Will | GTAMotorcycle.com

Will

black_CG2

Well-known member
This is actually two question thread.

1. I want to sign a will that after my demise my parents get everything I own. I went to Axess Laws and they said they can do it for about 200 bucks. But even though after I leave a will, my parents have to go through some legal process called Probe or whatever. Could someone elaborate on that please? I dont understand why my parents should go through more trouble even though there is a will.

2. My parents might give me some money to help me to buy a home. I want to protect that money should my marriage fails. According to the article below, I should be okay if I can get a gift letter from parents. Thoughts?
http://www.theglobeandmail.com/glob...r-adult-children-buy-a-house/article19994642/

Thank you, GTAM fam!
 
$200 for a will is fair for a simple one, the Probate process is the provinces way of validating a will, its pretty hard to avoid and usually includes some fees. Its just how the process works.

Dont get a gift letter, have it written up as an interest free mortgage. That way its not "introduced" into the marriage and your parents are creditors. You crap out or the house needs sold because they marriage implodes, they get paid out.

Have a lawyer do this, its peanuts compared to whats at stake
 
Kudos for looking into this.

Look up probate which basically means the distribution of assets have to be looked after legally to avoid claim jumpers so to speak.

Re 2: My brother wasn't hubby of the year and when he and his bride went house shopping her parents loaned HIM a chunk of coin for the down payment. When they split and divided up the assets Father-in-law got his money out of my brother's share. So a basically your parents loan the money to your wife. Check with a lawyer as family laws have changed since then.



It will cost you a bit more but I strongly suggest a good sit down talk with a lawyer. It's amazing what they can find.
 
Unless your parents hold a mortgage on the property, the matrimonial home is a shared asset and proceeds will be split. While you are at it, document all your pre-marriage assets and keep the docs forever.
 
Unless your parents hold a mortgage on the property, the matrimonial home is a shared asset and proceeds will be split. While you are at it, document all your pre-marriage assets and keep the docs forever.
Keep them in a safety deposit box away from home.
 
Thanks for advice, everyone.

Unless your parents hold a mortgage on the property, the matrimonial home is a shared asset and proceeds will be split. While you are at it, document all your pre-marriage assets and keep the docs forever.

I understand that a home sale proceeds would be split in half. However, I want to ensure my parents money stay with me. My partner would be the rightful owner to only to part of me, not my parents part.

Discussions are welcome.
 
I just got married... She's a great gal but I'm all ears.
 
Thanks for advice, everyone.



I understand that a home sale proceeds would be split in half. However, I want to ensure my parents money stay with me. My partner would be the rightful owner to only to part of me, not my parents part.

Discussions are welcome.

Depending on the amount your parents are putting in, the other way to do this is create a company to buy the house. Your parents own 50% of the company, you and your spouse own 50% (or whatever percentages make sense). Include an exit clause that if either relationship comes apart, the other couple must buy out the company or sell the residence to ensure the leaving party gets their share. I am not sure how this impacts principal residence exemption for CG though. An accountant/lawyer is your friend. I know quite a few people that have done this for secondary residences, but I don't know of any that used this approach for a primary residence. Again, a knowledgeable advisor can guide you on the best approach for your situation.
 
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Been there, done that. The simplest way is to have the parents as the private mortgage holder. If anything happens, the house gets sold and they are owed the mortgage amount. You don't get it, they do. The rest is divided between the spouses.

During the marriage, you either pay back the mortgage gradually or not, but the unpaid amount is always owed to your parents. They can assign a new mortgage to you after the fact as well.
 
Been there, done that. The simplest way is to have the parents as the private mortgage holder. If anything happens, the house gets sold and they are owed the mortgage amount. You don't get it, they do. The rest is divided between the spouses.

During the marriage, you either pay back the mortgage gradually or not, but the unpaid amount is always owed to your parents. They can assign a new mortgage to you after the fact as well.

There are advantages to both systems. Your way protects the parents money but in a relationship breakup, the family likely comes out with less.

Say the parents put down 200K on a 800K property, if the relationship comes apart in 5 years when the property is worth 1,100K, the parents get 200K, CG2 gets ~150K and ex-wife gets ~150K. If the dwelling was in a properly structured business(with parents owning 25%), the parents get 275K, CG2 gets ~112.5K and ex-wife gets ~112.5K. Family money went from 350K to 387.5K. It may not be worth it to set this up, but the implications are easily five figures.
 
True, but more involved in setting up a company. Joint owners between the parent/s and spouses? 33.333% each? Or parents own the house and the spouses "rent" it from them.
 
True, but more involved in setting up a company. Joint owners between the parent/s and spouses? 33.333% each? Or parents own the house and the spouses "rent" it from them.

All of the above are options to be decided upon. As the wife, I wouldn't be happy about renting the house as they are a great investment in the GTA. The devil is in the details (and potential tax implications) which is why competent advice is important. Again, it depends on the magnitude of the parents input here. If they are putting in <50K, anything other than a private mortgage is likely too much work. If they are putting in 500K, lots of thought should go into the structure of the deal.
 
All of the above are options to be decided upon. As the wife, I wouldn't be happy about renting the house as they are a great investment in the GTA. The devil is in the details (and potential tax implications) which is why competent advice is important. Again, it depends on the magnitude of the parents input here. If they are putting in <50K, anything other than a private mortgage is likely too much work. If they are putting in 500K, lots of thought should go into the structure of the deal.

The way it went with my brother (Not real numbers but...) His father-in-law loaned him $100,000 on a $500,000 home. When my brother split with his wife they shared the sale money from the house but my brother still owed F-I-L the $100,000. Brother netted $150,000 while wife netted $250,000.

As I said the laws have changed since then and I don't know if debts are now shared. You need a lawyer and or accountant.
 
Marital debts are shared. But this looks like a personal loan, so it would potentially be only the brother's. Should have been a joint loan to both to buy the house.
 
Marital debts are shared. But this looks like a personal loan, so it would potentially be only the brother's. Should have been a joint loan to both to buy the house.

It seems like the FIL had suspicions about my brother and protected himself and his daughter. Sadly FIL was right.
 

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