How to Leave Property to Your Kids Tax-Free

GRFS
September 10th, 2025

Leaving Your Family Home to Your Kids: A Simple Guide to The Smartest Ways to Keep Inherited Property Tax-Free

If you’re hoping to pass your home or other property to your children in the future, you need to be mindful of capital gains tax on inherited property in Canada. Luckily, if you’re passing on your principal residence, you can save your family from capital gains tax entirely.

To qualify for the Principal Residence Exemption (PRE), the property must be your principal residence (where you mainly lived before death). You can only claim one principal residence, so additional properties will not qualify for PRE. 

The right planning can make sure you pass down your home without having your children face large tax liabilities. Here’s a simple guide to how it works…