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Tuesday, March 29, 2016

Adding someone to the title of your house may be the easiest big mistake you'll make (updated July 2019)

I encourage the readers of this blog to ask questions for several reasons. The most important reason is that I want to know what's on your minds. I want to know what information you need so that I can figure out what role I can play in getting that information out there.

There are some topics that pop up time and time again, and even though I've answered similar questions many times, I keep answering them. I recently received a question about adding names to property, and regular readers of this blog know that I've talked about that endlessly. But seeing the question asked so casually made me think about how vulnerable many people are. They have no idea how much trouble they are causing themselves and their families by taking legal steps they should simply not take.

Here's a question I received recently:

"How easy is it to add someone to the title of my house? Can it be done at anytime or is this a question that I should be asking a bank?"

Here's what I gather from the question:
1. You expect to hear that it's easy to add someone, probably because you've heard from friends or others that it's easy.
2. You don't realize that you are affecting your own legal rights, as evidenced by the fact that you think this is a question to ask a banker.
3. Your plan is likely aimed at avoiding probate or otherwise involved with what happens to your house on your death, because you came to a blog that's all about inheritance.

Why oh why do people keep adding others to their titles? It DOESN'T WORK. Okay, I acknowledge that there are some good reasons to add a person. Perhaps you have just married and you want to own your marital home in joint names. I'm on board with that. But when it comes to inheritance issues, adding people to titles is almost always the absolute wrong way to go about things. Sure, your friends found it easy to add the kids but wait until those friends pass away and the kids have to deal with the mess left behind. It won't seem so easy then.

Instead of looking at adding a name to your title then making that step fit your goal, do things the other way around. What are you actually trying to achieve? What is the goal? And can it be achieved in some other, better way than risking what may be your largest asset?

Yes, there is risk. A great deal of risk when you add someone to your title. You do realize that "adding" them means you're giving it to them, right? I mean, you can't just remove them later if you change your mind. Keep this golden rule in mind: adding them is easy, but removing them is not.

You can't remove them because by adding them to the title, you've created legal rights for them. You've given them the rights of an owner. The fact that the property is "really" yours will not exist in law. And this is where the risk to you comes in. If the other owner - the person you've added - gets divorced, you could lose your home because it's actually one of that person's assets too. Same for that person being sued or losing a business. You could well lose your home because "adding" someone was easy and you didn't think of the consequences.

This brings us back to your goal. What is it you want to achieve? Is your goal to avoid probate fees? We now know that adding the kids' names to the title of the house no longer works. The house still goes into the estate despite the joint names.

Are you trying to leave the house to the kids? Why not just leave it in your estate and use your will to give the estate to the kids? That avoids creating a tax bill for the kids, and avoids that whole idiotic expectation that several children can own one house together without problems.

I urge you to sit down with an estate planning lawyer before you make any changes to your title. Find out the pros and cons of your proposed steps. Review your goals and find out how they can be achieved more efficiently and safely. Make sure your plans for your home are not made in isolation, as they have to work with your will, your insurance, designations made on your financial instruments, and other variables such as separation agreements.

Making one big mistake - and carelessly adding a name to a title is a BIG one - can mess up your entire estate plan and leave your family with a confusing, costly mess.






137 comments:

  1. Agree with your comments. If absolutely needed for some specific reason but do not want to transfer legal ownership, you could possibly document with a bare trust declaration - but definitely not ideal and doesn't help you if probate avoidance is the goal (which rarely should be the primary/only goal).

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  2. My spouse and I have separated, but still both dwell on our jointly owned property (separate dwellings). We have an only child, whom both of us agree shall inherit the property. But say I die first, and my spouse remarries or takes a common-law partner; is there not a danger then that she would come to inherit at least some of the estate? This is the only reason I had thought to add our daughter's name to the property.

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    Replies
    1. Yes, if you pass away your spouse could enter a new relationship and that could well end up with the new person inheriting from your spouse. Just to make sure that you are fully advised and informed, see a lawyer in your province to talk about how the law treats a matrimonial residence. For example, if your spouse marries someone else and they live in the house, what rights will the new spouse have in the home, and will those rights override your daughter's name on the title? As I said in the original post, it's best to start with a goal (i.e make sure your child inherit) and then look at all available options to see what will work best.

      Lynne

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    2. Thanks, Lynne for this very helpful reply. I'm already overdue for seeing a lawyer so will act on that today.

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  3. Could you please explain this:
    " adding the kids' names to the title of the house no longer works. The house still goes into the estate despite the joint names."

    Everything I have read indicates that when a parent adds a kid to the house (right of survivorship), after the parent dies the house automatically then belongs to that kid. (not really a 'kid', probably middle-aged by this time).

    This would be the first I heard of anything different, but I admit I never know where to look.

    Also, what would be the point, then, of adding a kid to the house deed if after the parent death it becomes part of the estate anyway?

    And further, why warn people off doing it if it makes no difference when they die for having done it?

    ReplyDelete
    Replies
    1. The things you are reading used to be right. It all changed in 2007 with two cases from the Supreme Court of Canada, one called Pecore and the other called Saylor.

      Now the rule is that if a parent adds a child or children to an asset, the asset is considered to be held in trust for the estate and does not go to the child. This only changes if there is independent evidence that the parent actually did intend for the asset to go to the child for that child's own use. If it was only put into joint names to avoid probate or for convenience, it does not go to the child.

      People continue to add kids to the title because they too have read things or heard things that lead them to believe it's a good estate planning move. Those articles are either from another jurisdiction, are out of date, or are simply wrong. It doesn't help that some holders of assets such as banks are being reluctant and slow to apply the new rules and are giving inconsistent information to consumers.

      I warn people off doing it because having the kid's name on the property causes confusion and resentment among the kids. It causes delays while they try to figure out how a will that says they each get an equal share works when one gets the house. It ends up with extra legal fees as they fight about whether the one on title took advantage of the parent. The one with the name on the house tries to get the estate to pay for the tax hit they've incurred and the others refuse. It's usually a mess, and it often takes a lawsuit to figure it out.

      Lynne

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    2. Thank you for this kind and helpful reply. It clarifies a lot, and will be useful in future to others I am sure. We now have something to "look up". :-)

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    3. You're welcome. A good place to do free legal research is www.canlii.org, which is run jointly by the provincial law societies.

      Lynne

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    4. Lynne,
      It isso nice that you are helping people in this way.

      Delete
    5. This doesn't make sense. Both the supreme court cases you are referring to held that where evidence of the transferor’s (parent’s) intention is unavailable or unpersuasive, a presumption of a resulting trust applies to the gratuitous transfer of assets by a parent into a joint account held with an adult child. So as long as the intent is correctly documented and declared, there should be no issue.

      Delete
    6. Jay,
      Sure, but nobody ever "correctly documents and declares" these things. Most people have no idea they are supposed to document or declare anything and if they did, they wouldn't know how. In a perfect world there'd be "no issue" but none of the clients I see live in a perfect world.

      Lynne

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    7. What the parents need to do is write and notarize a gift letter that clearly documents that the title of the property was to remain with the adult child after the death of the parents.

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    8. A gift letter is what is needed. But I would like everyone to research the tax implications: Capital gains taxes, PTT and legal fees for transfers.

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  4. Can you confirm that "Adding the kids names to the deed never works" in our situation. My husband and I purchased a cottage in joint ownership. Our principal residence is in the city. A few months after purchased we added our two adult children to the ownership as joint owners. The intent was to allow our children to jointly own the cottage upon our death avoiding capital gains tax as we have seen so many cottages being sold as the children cannot afford to pay the tax. Our lawyer indicated on the new title that the reason for the transfer was for estate reasons. Are we now at risk?

    ReplyDelete
    Replies
    1. I can't give advice to someone when I haven't seen their documents and I know nothing about them, but I can comment on how the general rules should apply. I find the phrase "for estate reasons" to be utterly useless, as it can be taken to mean pretty much anything. The joint ownership question turns on whether you as parents intend for your children to own the cottage for their own use, or whether you intend just to avoid probate fees. Seems to me that either of those things, even though legally they are opposites, could be described as "estate reasons". In my view, you're at risk anyway because you have two extra people on your title, either of which could cause you to lose your cottage due to their divorce, car accident, or being sued. Also, no matter how many people you add, you are not going to avoid capital gains tax on your cottage. Adding people will have no effect on that. If the kids can't afford to pay the capital gains tax on the cottage and the cottage is not available to be sold, then other things in the estate will have to be used to pay the tax. If avoiding it was that easy, everyone would do it.

      Lynne

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  5. Back in 2008 my mom put me on house deed. Value house at the time was 70,000. She has since passed away. I am now selling the house for 110,000. What amount will I have to pay capital gains tax on?

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  6. Hi, my mother put my name on her deed in 2008 (value of house at that time was 70,000 - although there is an affidavit attached to deed saying 35,000). She passed away in 2010. I am now selling the house for 110,000. What amount will i have to pay capital gains tax on? Many thanks.

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  7. 2. If I want to leave my new wife the house in my Will will she legaly own half the house or would my ex with have the

    3. Could I add mynew wife to title with out the consent of my exwife?

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  8. My exwife and I are on title for a house in Alberta. I curently live in the house with my new wife of almost 2 years.

    Questions:

    1. What rights does my new wife have to the house if I die?

    2. If I want to leave my new wife the house in my Will will she legaly own half the house or would my ex with have the right the house only?

    3. Could I add mynew wife to title with out the consent of my exwife?

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  9. due to the fact I had no credit rating, and was new in the relationship with my now comon law husband I put my moms name on our house. Is there a way to add me?

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  10. My spouse & I are care givers to our daughter who is receiving Ontario Disability Support Benefits. Our daughter lives in the same dwelling. My intent is to add my daughter to the property title so that on my spouse's and my death, our daughter will already be on title. Because our daughter lives in the dwelling, the asset is not considered to be her asset as this is her principle residence. My question is this: My reasoning in adding her to title (She's single) is for her security only. Ontario estate taxes will have to be paid regardless, however I st want to now if it s prudent to add our daughter to title legally now rather then her name not being shown on the deed. *NOTE* She has a Henson Trust and as well, I have appointed Scotia Wealth Management (Scotia trust Co.) as my executor of my estate. Thank you for your anticipated response.

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  11. Hello, My mom is thinking of adding my name to Title of her home because I am buying out my brothers (we will get legal letter done etc). I am currently living in the home and the home needs renovations and I will be paying for the renos and everyone is in agreement that the house will be given to me once i pay my brothers off. What is ramifications of me adding my name to title. Should my mom pass away I hope not to have any problems from my brothers since we will have letter drawn up. But would I have to pay fees etc once she passes away etc. We live in Toronto, ON I would like to know what I am up against. Your help is greatly appreciated.

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  12. This story reveals all the reasons to never add your children to the title of your home or joint on your bank accounts. My mother in law passed away in June 2017 and in the end she had nothing. Her pensions paid for her nursing home rent, but everything else was gone. She had only two sons, but the youngest convinced her to sign her house over to him (100%) and add him to her bank accounts.
    In 2016 my husband obtained his mom's Power of Attorney, but because the account was joint with his brother the bank denied the power of attorney unless the brother joint on account gave permission. It was not until 2017 he finally convinced a branch manager to add the Power of Attorney to the account as view only. Five years of bank statements revealed a lot about his younger brother, lump sums over the years had been transferred from his mom's account to accounts in his brother's name. This account was their moms, the only deposits her pensions. When the mom went into a senior res from the hospital, the youngest son went right to the house that night and started dumping drawers into a box. He sold her house and he and his wife took the proceeds for themselves. He gave his mom nothing. Her bank statements indicated over a five year period about $50,000 was transferred by the son to himself. Even when the mom's dementia progressed and she went to a nursing home, the youngest cleared out her account and left her $840. Also after transferring the deed to her son she continued to pay all upkeep and bills on the house including property tax. This son took his mom to the cleaners in every sense of the word.
    The eldest son, ended up paying for the funeral, but the youngest showed up and he and his wife put on a show.
    A week after the funeral, the sons went to the bank and the bank played right into his thieving hands by suggesting no estate account just deposit any estate cheques to her existing account joint with the one son. Note her will was joint executors and joint beneficiaries.
    After the damage the youngest son did there was nothing left for the joint beneficiary, except the funeral bill he paid.
    These actual events, should be enough to change anyone's mind about adding your children to the title of your home or to your accounts. The final results, her family no longer exists. The eldest holds the guilt about not seeing what his brother was up to so he could help his mom and I can say the youngest son holds no remorse for his actions.
    The mom was in the hospital and was taken right to the senior residence, they denied her requests to go home and pick her clothes. We heard over and over from her and others, that made her sad. Her granddaughter took her clothes over and a little at a time they went through them. My daughter was also upset that her Nonna could not pick what she wanted from her house, but I assured her, that she would be more upset, seeing her belongings dumped all over, with no care taken. Parents if for no other reason, consider all of your family members before making such a huge mistakes. In this case the people feeling guilty were not the actual guilty parties.

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  13. Thank you for the post. I have a question regarding my father's situation. I am removing my name from the house and mortgage for personal reasons and my father will be adding his brother instead because my father does not have an income. My father has a verbal agreement with his brother that he is really the only owner. In the case where my father's brother were to die before my father, does his estate have a right to my father's home? Thanks.

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    Replies
    1. Verbal contracts may be valid, but not those regarding land. All agreements to do with land must be in writing to be valid. This means that if your father's brother does not honour the verbal agreement for some reason, the estate is going to have a very difficult time enforcing its claim. It can be done, of course, but it would probably require a lawsuit. It would seem, based on what you've said, that a quick agreement between them, which doesn't have to be fancy, would save everyone a lot of trouble and money in the future.

      Lynne

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    2. I know this is an old question but your answer seems lacking of the basic component. If the Brothers are on the deed as joint owners & not as tenants in common then the house automatically is transferred to the surviving party. Only tenants in common have the right to transfer their percentage of ownership.

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  14. Lynne, the goal is to have time to clear out the unoccupied (15 years) house owned by my 97 year old aunt, still of sound mind, for whom I have sole POA for property, joint POA for health (with a cousin) and I am an executrix, joint with yet another cousin, who is an executor. Our Aunt lives in an apartment (with my assistance, and that of others) as a "shut-in".
    The goal is to clear out and sell the house without concern about her inability to sign a real estate sale agreement, should she become mentally, physically, or completely incapacitated, but still living, and while I am still able to do so. She will need funds for a funeral and a who knows what else prior to that.
    Can she & I draw up a legal document to put the house in my name, so I can proceed without her signature on the sale, with stipulation that all pproceeds from the sale go into her estate? Or do you have other suggestions?

    ReplyDelete
    Replies
    1. You already have a document that will allow you to sell the house on her behalf and which obligates you to put the proceeds into her account. That's the Enduring Power of Attorney. It appears that you don't really know how to use that document, so perhaps you should sit down with a lawyer for a bit and talk about what it allows you to do and what it does not.

      There is no reason for you to OWN the house in order to sell it for her. That's just extra cost and extra paperwork, and a huge extra risk for her.

      Lynne

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  15. Hi Lynn,
    I have been married to my husband for 10 years and we have two kids.
    After our marriage, he bought a business and a house that we still live in right now. I have asked my husband to add my name on the deed of the house and a partner in the business corporation, however he finds it weird that I ask him to do that. Just recently, he sold his older business and bought a new one, and shain didn't add my name to it.
    I am self employed since last 3 years and work about 15 hours only when my kids are in school. I also help him in his business whenever I get time in between the home, kids and my work. On Papers, his accountant shows his business income as a split between my husband and I, to avoid paying too much tax. However, I don't ever get my 'income' from his business, since he claims that he pays the mortgage and all the other bills. No doubt he works hard, but I worry that whatever he has is not safeguarded to protect his family incase of any unfortunate event.
    My husband evades the topic about Wills, Deed, POA or life insurance policies for the both of us, calling it as a biggest scam. I'm worried about the financial security of my children should I pass away before my husband. I have RESP saved for both my kids since I get some child tax benefit, and that's pretty much the only saving we have.
    I would like to know my rights as his wife and as a mother of his children, without divorcing him or separating from him. Should something happen to him before me, is there anything my kids and I would own or are there legal complications since there is no Will, no Deed or POA
    Your help would be greatly appreciated. Thank you.

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  16. I live in now and since we are having issues with the bank I went to see my own lawyer about solidifying my estate. He suggested there is a document where I can put my daughter on the house through registry of deed and on my bank account with the provision that it is for estate planning only. she will not be able to empty my accounts, her creditors can't touch the accounts nor can she sell the house from under me. She is my only beneficiary. Are you familiar with this? I know your other blog is full about beneficiaries inheritances so if I may a second question......the bank holding the estate account is dragging their heels on paying out debts occurred by the beneficiaries and are not giving the executor access to he estate account. Is this legal? All balances to the bank ie mortgage, credit cards etc are paid. The bank wants the receipts submitted to them for payment. Seems like money grab to me.

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  17. Hi Lynn,

    Two questions.....first we a are currently probating my mothers will and the house has been sold. Due to issues with the bank over the estate account...which will be question 2 I went to see my own lawyer. He said that I could sign a specific form that will allow me to put my daughters name on my house and bank accounts that indicate it is only for estate planning and she cannot sell my house nor could her creditors touch my accounts. Is this correct? Question 2 the bank which has my moms estate account will not give my brother, the executor, access and are requiring us to submit receipts for funeral, obituary, probate etc to them for payment. Is this legal, will stated he was the executor and was to pay bills etc.....seems like money grab to me as they want money for every bill submitted. I have 4000.00 in receipts related to death and six months later they are not paying. Receipts are probate fee, obituary, oil for her house, memory box and engraving for ashes etc...

    Thank you for your time and this blog!

    ReplyDelete
  18. My father's Bank would not speak to me until I receive my Certificate of Estate trustee. I live in Ontario. My bank account is jointly owned (Last survivorship option.)When I die, my daughter can move the funds into her account to avoid probate fees. As for the deed, my lawyer added my daughter (s joint tenant) for 1/2 ownership and when I pass, the remaining ownership (My property) flows through the Will to my daughter. Simplicity at its best.

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    Replies
    1. Well, Doc, unless you have only one child, I sure hope your will deals with those joint assets. It is no longer true that joint property between a parent and a child flows to the child automatically. If it were really that simple, everyone would not now be in court fighting about joint property.

      Lynne

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    2. The benefits of being an only child :)

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  19. Hi there…read a few of the postings here and thought I ask about our story: it’s a brady bunch situation…divorced Mom of 3 boys meets widowed Dad of 3 boys – they marry, they celebrate 30 some odd years together as husband and wife. The Dad passes away and leaves a will. The will states that everything is left to his wife until either her death or she sells the family home. Upon either situation the sale of the house will be divided 50/50. Half will go to the wife. The other half will be divided equally between the Dad’s 3 boys as per his will. Recently, the step-mom informed the Dad’s 3 boys that they are now responsible for paying probate based on the value of the family home (appraised at his time of death). How does this work? And she has also been advised by her lawyer that her 3 step-sons should be listed on the title of the house. We don’t think this would be in anyone’s best interest. So our questions would be: who is responsible for the probate tax? And why should we be added to the title of the house? Any suggestions would be very much appreciated.

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    Replies
    1. The probate tax is payable by the estate. I don't know why she thinks the sons are responsible for it. Even if the house was the one and only asset in the estate, the probate fee comes off the proceeds, which are split 50/50. So, I can't explain that one.

      As for putting the sons' names on the title, I expect that they may not want to keep the house in the name of the estate any longer than they have to. This is so that the estate will not have responsibility for the house. For example, if there is no money in the estate to pay for maintenance or property tax or insurance for the house, where is that money coming from? If there was money left in the estate that could be used for this purpose, then putting the house in all the sons' names may not be the best idea.

      Every decision made is a balance of risk and benefit and cost.

      Lynne

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  20. Hi Lynne.
    I own a home with my partner as joint tennants. Both of us are on title. He is self employed and had his mother act as a guarantor. Her name is also on title as a joint tennant however it was mentioned that upon her death her portion goes to her estate which I believe is not reflective of a joint tennancy agreement. Why would this be the case and if my partner died before her, what would happen to our joint tennancy?

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  21. Hello Lynne

    I have a question. If I live in a house that is owned by my father but have lived here for more then 15years. If when he dies what is the best way to handle the house. I would continue to live in it.

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    Replies
    1. That depends. What does your father want to do about the house? I don't see anything in your question about that.

      Lynne

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  22. Lynne, A couple questions...

    In a reply above you stated, "This only changes if there is independent evidence that the parent actually did intend for the asset to go to the child for that child's own use."
    Would an example of independent evidence be the will which has only one recipient of the estate which is the child on title?

    Secondly, I am an only child. No other relatives. I am not on title as owning any other property. My father is 89 and does not wish to leave the ranch. I'm retiring this year and have no choice but to move there and take care of him. I have set aside half a million dollars in the case that his care would require an assisted living facility. Am I correct in thinking there would not be capital gains if I went on title and the probate fee of 1.4% would not be an issue because it is my principle residence. As a side note: I'm amazed how many silver-haired foxes have come out of the woodwork to try to sway my father into a relationship since my mother died. Luckily, he's too smart for that and they quickly disappeared, but children need to be wary of these people who prey on widowers seeing there's money to be had. A child can protect their parent and themselves by being on title.

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  23. I have a live in girlfriend and she want to contribute to the expense of the mortgage, taxes and other bills. Essentially, she is willing to pay 1/3 of the bills and mortgage. We want to draw up an agreement where I retain my equity, but any equity gained (or lost - but unlikely), and that she would benefit on any equity above my current amount for 1/3 share should anything happen to me or our relationship. I am comfortable doing this as I think it is a very fair thing to offer. Is there a proper way to go about this, or can we simply have a written agreement notarized by a lawyer and be done? Or do you have other suggestions on how to best handle this?
    Thank you,

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  24. This grandmother and grand child have been close since the day the grand son was born. He does everything for her and loves her dearly. He pushed his grand mother to start dating. She now is but the grand mother fears her new common law partner will be able to take her home when she passes which she wants to leave to her grandson but fears her children would contest it if she just puts it in the will and now reading your article it sounds like it doesn't matter what they do the common law partner will get everything any way? This is some crappy news I'm going to have to tell this girl. ( we play cards together and chit chat a lot. It's how I know what she wants) her plan was to put the grandson on the deed because he's always been their for her. She thought if he was on it that no one could stop him once she passed. She didn't want him to have to go to court against his own family as she says he will just flop over and give those ungrateful bastards everything because he's too damn kind and doesn't like conflict. ( her exact words. Lol) please tell me their is something good I can tell this woman.

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  25. Here one for you. I bought a house in 2001 at just 19 yrs old with a pen and scrap paper. The man wrote he was selling me the house, signed it as well as me and had the Justice Of the peace sign it and that was it. At that time I didn’t know the difference. Now the man is dead and I have no deeds or nothing. However I did get the land surveyed a couple of years ago. The mans wife is still living. Do I have any rights without deeds? Can I lose my house? Can I even sell it?

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  26. Ok I have a question I own my place I'm the only one on the title but I want to sell my place but me and my ex are no longer together we use to be common law do I have to give her anything

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    Replies
    1. As long as your the only one on title you would be the only person to get any Equity after the sale is completed.

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    2. On the bare facts, no, you don't have to give her anything. But since this is not my first rodeo, I have to ask: did she help you pay for it? If so, she might have a claim for unjust enrichment.

      Lynne

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  27. Hi Lynne,

    My husband and I recently bought a house together and I provided all the down payment for the house. But we will both pay for the mortgage equally. The house has both our names on it.

    On the side, he owns a condo before we got married and he has full ownership of it. Because I have put in all the down payment for the house, I would like to have an equal ownership of the condo to protect myself. What would be the best approach you would recommend? Adding my name to the condo or writing up a contact with a notary to state that I own half of the condo?

    Thank you Lynne!

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  28. Hi, my father is ill and will be leaving me his (mortgage free) house.

    I have unsecured debt. Will the creditors be able to put a lean on the house?

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  29. If a parent is in a nursing home and leaves (Principal Residence) to one of his children will the house have to go into probate and is there any tax owing on the Inheritance? Meaning does the house fall under Principal Residence Exemption?

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    Replies
    1. Yes, the will is going to have to go through probate. If it was a principal residence, there will be no capital gains tax when the title leaves the parent.

      Lynne

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  30. If I die before my Mother who will inherit her money?

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    Replies
    1. Well, let's see. Is she married? Does she live common law? Is there a matrimonial home? Are there any outstanding matrimonial property division issues? Does she have a will? Is her will valid? Are you her only child? Do you have any disabled siblings? Does she own assets jointly with anyone? Does she designate beneficiaries on any assets? Does she have debts?

      Lynne

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  31. Hi Lynne
    My partner got a heritence and purtrace a home.
    I am him are paying for the mortgage well mostly me because he put the down payment onnit and I will be paying off the mortgage so I will be adding my income towards it and we want to put both names on the title but not the mortgage just him.
    The lawyers worker said that can't be done and there is a promise letter with the borker that I will be pay I g the amount of what the mortgage is which thatbis the only way he got aprived but my name is not on the mortgage tho only for the fact I still have outstanding balances for some creiters but there is a letter with the borker anx she saying this is inposible to do and never heard of it before same a the worker for the lawyer. I have read almost everywhere this can be done, one name on the mortgage and 2 name on the title. Is this possible to do because we are getting ready in a few days to sign for closing date with the lawyer.I am pay I g off the mortage as my share. What can I do plus if somethi g were to happen we want to make sure that myself and are daughter can stay in the home and just continue payi g the mortage also be able to leave the house to the chiildren when we both die so what can I do and is this true can both names go on title and one on mortgage in canada Ontario?
    Please help I am so confused now as I was sending over the title to the lawyer to be papared and now the worker for the lawyer said no to me not to put my name on it.
    This is not fair. What I we do.?

    ReplyDelete
  32. Hi Lynn can you help me with this question is this true can 2 names be on the title and one on the mortgage.
    In Canada Ontario?
    Everyone that is involve in me and my partners home to get which is almost done closi g date is coming he is on the mortage but only got the mortage because of my income helping pay the mortage and he also put down a hugely amount of money and to help pay my share I will be paying the rest but his name is on the mortgage and we were almost done as I was sendi g over the paper work the lawyer sent to put both names on the title and my lawyers worker said no it can't be done. I also want to say its for taking responsibly to pay the mortage if he passes and raise are dughter in it plus the boker said she never heard of this before and said no it can't be done but they have a letter saying I am paying the amount of the mortagae to my partner so he can pay them but being his creit is cleared and mine I belive I own still on one just never even thought of it but with that being said we go sign the document soon and want this done this way as joint tenantey as the documnet the lawyer sent over told him to fill it out the title papers which I do all the the paper work with being the brains no offence to my parnter and there is none taken from him and we wanf this done also for the children to have when we both die and not have the bank take it just becsue of something so simple that they already know about also the fact that is something were to happened and I have to take care of this payment my self which I am and hes payi g the nills which we deside to do and that this loan would be for me to pay off and that would be my share onto the home. What can we do? And is this possible to do two names on title and one on mortage?

    ReplyDelete
  33. Hi Lynne.
    I have a mortgage on a home with my partner as joint tennants. Both of us are on title. He is self employed and had his mother act as a guarantor. Her name is also on title as a joint tennant however it was mentioned that upon her death her portion goes to her estate which I believe is not reflective of a joint tennancy agreement. Please clarify this and if my partner died before her, what would happen to our joint tennancy since her name is also on title.

    ReplyDelete
    Replies
    1. If his mother really is a joint tenant and she dies first, there is nothing to go to her estate.
      In my experience, people call everything with more than one name a "joint tenancy" without appreciating the difference between the various ways there can be more than one name on a title. This may be the case with your partner. However, you should read the title itself to find out what the arrangement is.

      It's possible that there is an arrangement whereby his mother is a joint tenant with 1/3 of the title, with the other 2/3 being held by you and your partner as joint tenants. In other words, you two are joint tenants of a share of the property not the whole thing.

      Any of these things is possible so it's a good idea to find the paperwork (or do a search online) to read the fine print.

      Lynne

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  34. My brother has put our father on the title of his property. Why would this be done and would our elderly (87 yr old) father have any fiancial obligations?

    ReplyDelete
    Replies
    1. Obviously I don't know for sure, but most of the time when a parent is added to a title along with a child, it's because the child (regardless of age) needed a co-signor for the mortgage.

      If your father was put on the title and your brother removed from it, your brother is probably trying to structure his assets to avoid creditors.

      Being on the title probably does not bring financial obligations beyond the usual responsibility to maintain and insure a property. If he's on the mortgage too, that's another story.

      Lynne

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  35. My daughter and boyfriend purchased a house, joint tenancy in BC. We lent her money secured by a mortgage which is both their names. They now split up. They were not together long enough to be common law. For the down payment, my daughter contributed 55% of it and together with us, contributed 90% toward the purchase. The house is to be sold at an increased value. What % of increased value is her ex entitled to. 50% due to joint tenancy, or 45% based on my daughters down payment percentage. Could he be getting as little at 10% due to us lending the money to her which is secured by a mortgage, which is in both their names?

    ReplyDelete
    Replies
    1. I suggest you contact a lawyer who does real estate transactions. That is not an area of law I work in.

      Lynne

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  36. My mother at one point owned two houses. One being her principal residence of over 40 years and a second home where she had planned to move to but never did. Her original wish was to leave one house to one of my siblings and the other house to me, and this is stated in her will. My sister was named as a beneficiary of the principal residence . A year after the will is written, unknown to me at the time, it was considered a good idea to have my other siblings name on the principal residence as a joint tenant. In the years that followed, the secondary home was sold as Mom had decided not to move and the will wasn't never changed.

    Mom is principal residence is also my principal residence of the past 7 years. I was moms full time caregiver during that time up to her passing. The named sibling on house resides in a foreign country and has for over 20 years.

    It has been the general understanding among the siblings, there are 4 in total including myself, that moms will would split the real estate between myself and the named sibling as we are the youngest of the four and the two eldest already own their own houses. The named sibling on the house verbally expressed that her intent was not to take right of survivorship and possession of the house because she was a joint tenant in 2015. This of course, was Prior to Mom's passing and opening of the will where the named sibling is beneficiary of the home.


    The facts as I know them are that my sister owns principal residence and does not have to, nor can be forced to, give up full possession of the home. I live in anxiety that when the estate is settled I will the forced to leave even though I cared for Mom in her last year's without assistance, or emotional support from my siblings. But that is for another blog entirely.

    My question is if, by the grace of God, my sibling does indeed intend to share and I would become a joint tenant on the property, how does her residing in a foreign country affect title transfer?

    I understand that transfer between siblings is not an exemption for transfer tax and that would be payable. But what about capital gains tax? Since it is not her principal residence would she be required to pay Capital Gains on half of the value of the house that she would transfer to me even though I am the principal resident at this time? I do believe she still uses this address as her own in Canada and if she were to fly home to process the transfer it would look as though this was her principal residence as well, although I am fuzzy on those details so I guess it's more of a side note. It's up to her to determine any ramifications in her residing country.

    If the transfer does happen, yes you are allowed to scoff here, I m assuming we would agree that these taxes would be split between the two of us equally. Unless of course she demands that I take 100% responsibility as the price of the transfer. Again, that's for another blog. At this time I'm not holding my breath but only trying to calculate costs on the possibility as I know the question will be asked and none of my siblings seem to know how to spell the word Google.

    Thank you for your time.

    ReplyDelete
  37. Lynne, I wonder if you know of any lawyers in BC that are familiar with this type of law. I agreed to put a girlfriend on title to my house in order for her to secure a 5-year conventional mortgage with the agreement that it was still my house and I would still pay all the bills, etc. At the last minute, she told me my name had to come off for the Scotia Bank to finalize the mortgage - as soon as my name was off title, my friend of over 50 years went on to kick me off my property and sell my house. I was devastated. She provided false documentation to a court to get an interim order to sell my house and within 2 weeks had disposal bins removing all of my personal belongings - essentially throwing out my entire life (tools, memorabilia, clothes, computers, work, books, etc).

    ReplyDelete
    Replies
    1. Wow. You know the saying... with friends like those, who needs enemies? I don't know many lawyers in BC, sorry, and for sure I don't know any who deal with fraud like this. I wish I could help.

      Lynne

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  38. At the moment, the property is only in my husband name
    We have a home with acreage near Frederick NB
    We live in BC
    Can we add both names to the property-title if just my husband name is the only one on the mortgage? we have recently bought near fredericton nb. the mortgage was only in my husbands name. i find it hard to deal with government officials at time as they only want to speak to the owner of the property. can me the wife be added to the deed if so how do we do this. we do not live in new brunswick yet, we live in bc but i will be retiring before him next year and living there alone until he comes. thank you
    thank you

    ReplyDelete
  39. My father in law helped with the downpayment (less than 20%) and put his name on the deed with my wife. 20 years later now that my wife and I paid off the mortgage is the father in law entitled to half the house value? We at no time required assistance with mortgage payments. How do we remove his name from the title? Our relationship with him is very loving.

    ReplyDelete
    Replies
    1. Ask him if he's willing to have his name removed. If so, you can all sign a transfer/indenture (from 3 people to 2) and file it at the land titles office.

      Lynne

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  40. We spoke w a lawyer to request putting me ...the wife....on title of my husband home and the lawyer said it would require two separate lawyers to facilitate the transaction...I thought this sounded bizarre as there is no purchase and sale happening. ...no money payouts to or from either of us...just a simple request to add me on title as owner along with him ....could you tell me if this is correct or is the lawyer trying to grab me for more money on this

    ReplyDelete
    Replies
    1. It's called independent legal advice. It ensures that both people understand what they are getting into and what they're giving up, without the other one around to influence them. Standard practice. Also, one of the keys to making any agreement stand up legally when it's between parties who are non-arm's-length.

      Lynne

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  41. hey there. I am currently the only name on my homes title and looking to make some changes to my mortgage plus get a loan from the bank, the bank is requesting i add my wife to the title to help secure the amount of the loan. Is adding my spouse the only option i have in this case or is there a different rout i can take?

    ReplyDelete
    Replies
    1. Well, I'm not a banker so I can't give banking advice. I only wish that bankers would stop giving legal advice such as "you should add your wife". How nice of them to give you advice to create legal rights for your wife and change your rights respecting what is probably your largest asset. I think we can both agree that their solution might work for them but in no possible way protects you.

      Lynne

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  42. Can you explain what are the detail to make it mess? I really don't find it from your article.

    ReplyDelete
    Replies
    1. The "mess" happens when a name is added to a title for the purpose of avoiding probate, reducing probate fees, or other home-made estate planning goals. Then when the parent passes away, the person who was added to the title thinks they own it. The other kids in the family think the person does not own it. They argue. They go to court. Thus, a mess.

      Lynne

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  43. We are buying a condo and my husband is getting mortgage. He didn't want to add me in a mortgage payment and stuff like that but the mortgage broker told him if he wants to add my name on title then I should be included to the mortgage. My question is is it true as a married couple if we want to joint and both be owner my name should be on the mortgage as well? Also, I'm not working now.
    If you could explain to me I would appreciate!

    ReplyDelete
  44. My husbund and I we both the house together and he is only on the title of the house and mortgage. What are my rights if something happen to him?

    ReplyDelete
    Replies
    1. You said "we both the house together" so my first thought was you both OWN the house together, but then you said "he is only on the title" so that seems to contradict it. I'm answering on the interpretation that he's the only name on the title.

      The answer depends on three things. One, which province you live in. Two, whether you are legally married or common law. Three, whether there is any kind of agreement in place about the house such as a pre-nup or waiver of rights.

      My book, The Real Life, No-Nonsense Guide to Estate Planning gives a full, detailed breakdown of what rights exist for spouses in each province.

      Lynne

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  45. My husband and I are Ohio, USA residents and own a cottage in Ontario. After reading your blog, it seems the idea we had to add our two children's names on the deed is not a good one?!?
    Our goal is to leave the cottage to our children and their families to use as we have used it for many years. (the family has owned it since building it in 1959).
    We thought this way would be easier than going thru probate but it appears that is not the case.
    If I understand, it is best to leave it in our names thus becoming a part of the estate when we pass away. Our will would then specifically state to leave it to them.
    And doing so would result in them inheriting the cottage and if they can't afford capital gains tax, they should use funds from the estate to pay them.
    Any other thoughts or clarifications?

    ReplyDelete
    Replies
    1. Hi Becky,
      You've definitely been doing your research :)

      The only other thing to think about is the future ownership. How realistic is it for two separate families (i.e your two children) to share that cottage after you and your husband pass away? If one uses it more than the other, will this cause an issue over equal payment of insurance and repairs? How will they handle it if one wants to sell and the other doesn't? Will they be able to agree on who uses the cottage at any given time? Have you considered that if both of your kids own it and one gets divorced, they both might lose financially?

      Just be sure that leaving it to both is a good idea. In my experience it never works. Ever. In the history of cabins it has never worked out long-term when the cabin is left to more than one child. Talk to the kids to see how they feel about it.

      Lynne

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  46. Hi Lynn,
    I need your advice... My parents own a house in Ontario. They used that house to borrow moneys from creditors...I talked to them and they agreed to add my name on the Title to stop them to create more debts... Do i need good financial status to add my name on the title. They are paying mortgage (with my helps).

    ReplyDelete
    Replies
    1. This seems like a question for a banker to answer, not a lawyer.

      Lynne

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  47. Hi Lynne

    My partner is really sick, we have a will but lost the original copy, we have been in a common law relationship for over twenty years.

    We were thinking of adding my name to the property title so that it would be easy for me to take over.

    What's the easiest way to transfer the property to me, our will is 15 years old, should we renew it.
    Also whats involved with inheritance of a property through a will, like how to proceed with the inheritance, is it automatic, or is there paper work involved.

    Thanks

    ReplyDelete
    Replies
    1. Hi Richard,
      There is always paperwork involved in transferring title to a property, whether there is a will or not. If the property is left to someone in the will, first the will has to be probated.

      If your partner is able to, it would be a good idea to get a new will done. A photocopy of a will is useless.

      You said you have been in a common law relationship for 20 years. In some places, that makes you equivalent to a legally married couple and in some places it does not. If the property you refer to is your home where the two of you live together, and if your partner wants you to have the property for yourself, then consider having your partner add you as a joint owner of the property. If you were joint owners and one of you passed away, the other one does not have to probate the will in order to inherit the property. Now, for clarity, I want you to understand that this is a possibility for you, but I am not recommending it. Nor am I recommending against it. I don't have all the facts so I am not advising you on whether it's a good idea. What I am advising you is that there is a relatively inexpensive way to transfer the property that is worth exploring. This would be a good time for you and your partner to talk to an estate planning lawyer. If your partner is too sick to go out to an appointment, then ask the lawyer to come to your home. Some of us still do that.

      Lynne

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  48. Hi Lynne
    I just read your comment I'm wondering are you talkin about joint tenancy we do have that with the lawyer but we were planning to sell and he suggested not to have it registered until we've decided whether we're going to keep it or sell it it cost about $400 is that what you're talking about or was it registering putting my name on the title paper thing

    ReplyDelete
  49. Hi Lynne,

    My Brother and I purchased a rental property in 2016 but I could not be on title at the time. I had student loans and 99% ownership of another rental property we owned together. I would now like to be added to the title as my loans are gone and I sold the other property. Is it possible to do this and avoid LTT? I have been paying income tax on 50% of all profit from this rental property and have documentation to show our intent to purchase together and record of our 50/50 down payment through banking records.

    Thanks for any advice or insight you can provide.

    Paul

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    Replies
    1. Paul, I'd like to help but I do very little real estate and I am not the person to advise you. I suggest finding a lawyer who does a lot of real estate work.

      Lynne

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  50. I realize its a risky thing to add your adult child to the title deed of a primary residence, but what about a secondary residence? We still own our first home in Ontario we bought in the 60's and our adult child has been living there and taking care of the expenses for decades. We visit there every year from BC for a month or so, but that is it. We've made money gifts to our other children to help them buy their first homes or condos in the past, and we have all agreed it would be good for this one to inherit this house. Is this a good case for adding a child to title to avoid probate and ensure they get the property entirely, rather than it becoming part of the estate assets? I haven't seem anything written about this so its probably a rare situation.

    ReplyDelete
    Replies
    1. I feel that the secondary residence is a whole different kettle of fish from the primary residence. The risks you mention are still there, but the impact on you would be much less if you lost your summer place than if you lost your full-time home.

      The fact that you are taking care to equalize the help you are giving your children is also an important factor. It helps displace the idea that one child is getting something that others are not.

      Make sure if you put him on the title you document your intentions somewhere. Either write him a letter explaining that you are giving him the secondary residence by adding his name, or confirm it in your will. Just make sure your intentions are written down and known to avoid problems.

      Also consider tax. While the property is in your names, it will continue to attract capital gains tax if it increases in value. On your death, that tax is payable from your estate. If your son's name is also on it, his 1/3 will likely not be taxable if it's his principal residence. Think about whether tax-wise it would be a savings to transfer the whole property to him now, crystallize your capital gain now, and not incur any more tax going forward. As I said, I offer this as a consideration only since I don't know anything else about your financial situation or your son's situation. Perhaps it's a conversation you could have with your accountant, too.

      Lynne

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  51. Hi Lynne,

    We own a house me and my husband and we are applying to get a secure loan from the bank and we will transfer the mortgage to this bank.

    They advised us to add my adult son in the mortgage because our income not enough.

    What should I do to be safe because I have another two kids.

    How much the cost of the lawyer to add my son and transfering the mortgage.

    If you any ideas to get any loan without adding my son.

    Thanks for any advice.

    ReplyDelete
    Replies
    1. The bank has given you advice that secures THEIR position. They don't actually care at all whether there is risk to you. It's their business to look after themselves and make money.

      You can cover off the issue of the other two kids easily enough. You can do that by making a will that explains why your son's name is on the house. But that's the least of your worries.

      You are obviously aware that adding your son to your title can cause problems. There may not be risk for the bank but there is for you. If your son gets divorced or is sued for some reason, you could lose the house.

      I'm not a banker so I can't give any ideas about how to get a loan without adding your son. I don't know a single thing about you or your assets. All I can say is that you should remember the bank's focus is on their profit and not on your legal rights, so think long and hard before adding your son to the title.

      Lynne

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  52. Hi Lynne, I am legally married to my husband for almost 6years now. However, we recently bought a home here in Canada but I couldn’t get on the mortgage because my credit was still Low. We were told by the Brokers that I could put my name on the Land title in which my husband did included my name. The lawyers have come back to tell my husband that they cannot include my name until when he is signing until after the whole deal has been closed. Please can you advice on how long I have to wait till he can add my name? What are the steps

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    Replies
    1. I can't tell you how long it will be because you have to let the local land titles office process the purchase of the house by your husband. That length of time depends on where you are and how busy their office is. Here in my jurisdiction, the land registry usually takes 6 to 8 weeks to process something.

      The basic idea is that the bank and/or broker is only willing to put your husband's name on the document, not yours. Remember that their goal is to secure the money they lend. The lawyer is saying that once your husband owns the property, he can add you as an owner if he wants to.

      Lynne

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  53. Your knowledge is so indepth, realistic, kind advice and suggestions.
    I learned much reading your blogs. Thank you.

    I own my condo. My husband owns nothing
    He also signed a waiver of rights in front of an independent lawyer. He is excluded from my will. We are not divorced. I can do that immediately if you see any loopholes.

    ReplyDelete
    Replies
    1. Wow. Well, I would never be so foolish as to advise someone on the basis of a few lines of text to divorce her husband or not. The only thing I can say is that if the condo is in your name and he has signed off a waiver of his rights to the matrimonial home, you are ahead of the game. Otherwise, of course, he would likely claim half of the condo. That waiver doesn't cover the contents of the condo or any other property such as bank accounts.

      Best of luck
      Lynne

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  54. Hello Lynne,

    Must say this has been very helpful.
    It's cleared up a few nuances but I still have an open question.

    My parents have multiple properties and a primary & secondary home.
    They would like that I build a house on a lot next to their current secondary home so that they can live out their remaining days there. After which I would get the property. My siblings who love in the USA do not come to Canada and do not have citizenship in Canada. Not that it matters any. There is other assets to be divided when time comes, but they are slow to finalize their wills. (Whole different dramma).
    The lot has been partially developed in that we have cleared the land and has a septic system added already.
    I would be willing to build a house and let them use it as co-tenants. I would be taking out a mortgage to complete the construction and would declare this as my primary residence.
    We are looking to add me to the land deed as a necessary step to secure a loan. My question is then what key steps have I left out and should they remain on the deed or should I buy them out now, following up with a tenant agreement so they retain access?
    Or is there a better way to go about this?

    Thanks again.
    -sean

    ReplyDelete
  55. Hello
    I would like to add my adult child to the title of my condo who is already living, paying for and up-keeping it. Would there be any problems after my passing with probate?

    ReplyDelete
    Replies
    1. I'll just go ahead and assume that you read the article before you posted your comment, and I won't repeat all of that information.

      Are all of the arrangements you mentioned in writing, or verifiable by a paper trail? If so, it should be obvious to anyone who views the documentation that it was your intention to leave the condo to your child.

      Lynne

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  56. It is not a comet but question. I downsized ,sold my principal residence and bought a condo cash . I put my elder son as Right of survival ship on title .Also wrote my intention that it should be given to him He has his own principal residence What are the consequences or it will go smooth after my death.Is it better to add my 6 years old grand son instead

    ReplyDelete
    Replies
    1. Hi RQ,
      No, a 6-year-old can't own real estate.

      In terms of things going smoothly, it sounds as though you are trying to ensure that the property goes to your son without disputes. I'm wary of reassuring you that all will be smooth when I don't know what sort of disputes you are anticipating. However, since you have made a record of your intention to gift the property to your son after your death, you have avoided at least one big issue.

      You also mention that your son has his own principal residence. This may mean that when you pass away, only half of the property (your half) is tax-free. The part that your son owns is not tax-free. I suggest you discuss this with a tax accountant to ensure your son does not end up with a tax surprise.

      Lynne

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  57. Hello Lynn, I'm glad to have come across your article and find it very insightful and thank you for sharing great information!

    I have a situation of my own. Would you be able to give your insight into it?

    I now have POAs for both my parents who are on title of their home.

    Also on title is my brother, 2% tenant in common.

    When originally getting a HELOC on the property, we didn't have him on title. He was the one requesting this loan.

    Then came a time not so long after he wished to increase the HELOC an addition amount, $50k

    He didn't tell my parents about being added onto title. I asked them and they say no. They are not savey and don't understand legal stuff. They just trusted him. He never told me either.

    I asked him earlier this year about this issue. He claims the bank required him to be on title. I'm investigating the finances because I find issues and need to fix them.

    From what I know, he could have been a guarantor and not have to be on title.

    There is no proof of all this as far as I can tell now. My parents have no copies of any documents they signed.

    My brother is being obstinate and uncooperative in giving me any information including copies of these documents.

    The bank is refusing to recognize my POAs.

    I'm wondering if there is fraud going on here.

    Any ideas on how I can research the title, etc....to discover what is going on and if there is fraud?

    ReplyDelete

  58. This reminds me of a lawyer (no longer, as he got off the record) who tried to establish a Beneficary as a 50% owner of a property of an Estate that I am the Executor of. I would have lost control as Executor. I could not believe that my Lawyer, any Lawyer, would have suggested that. He certainly was not working for me. This Lawyer once emailed me that I could Fire him.

    ReplyDelete
  59. Hi lynn you mention the mess :) in my case I am an only child. Would it make sense to be joint tenant? Honestly some it is to avoid probate but it will also help my ability to purchase other properties.

    ReplyDelete
    Replies
    1. My question as well. Only child father recently passed. Parents both on title..my mother needs to go into assisted living once the covid settles down.As executor I have put the house title into my moms name only should I have added my name to the property?

      Delete
    2. Being an only child certainly takes one very big concern out of the picture. At least you won't have other siblings wondering whether you are trying to get more than your share.

      However, the fact remains that there is risk to a parent when a child is added to the title. Being an only child doesn't protect you from getting divorced or declaring bankruptcy, etc. So, yeah, it might be to your advantage to be added to the title but is it really a good idea for the parent?

      To answer the question about the executorship, I have to point out that you have no legal authority to put your name on anything. As executor for your father's estate, you can transfer his property as directed by his will. If you are executor for your mother, since she is not dead you have no authority to do anything.

      Lynne

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  60. Hi Lynn, I'm not sure if you are tending to these questions in this difficult and uncertain time. My mortgage term expires May 1st and I will have been living with my girlfriend for 1.5 years by that point and together 3 years. I purchased my home a bit more than 10 years ago and have put between 180-200k into it in mtg payments and improvements, not including bills. I was considering refinancing but rates are not favourable and neither is doubling my principle. I am wondering if there is a safe way to set parameters in a legally binding contract stating that say 130,000 will be given to me in the event of a sale, and the remainder will be split 50/50 whether we end up married or not. I want this document to give no bearing whatsoever to any future expenses between the time it is signed and the house eventually sold or assumed. Will such a document hold up? I have heard of a co-hab, but have heard they are as you put it a "mess" so I am looking for a way to recover some of what I have put into it and add her on title because i want her on title, she deserves to have a safe investment and to feel like an equal partner in our home.

    I thank you for all that you do, and hope you are able to make sense of what I am hoping to accomplish.

    ReplyDelete
    Replies
    1. Co-hab agreements can be a mess but that is certainly not always the case.

      It seems to me that what you are trying to achieve here is specific to the piece of property. A co-hab agreement usually covers more than just that, so maybe a co-hab isn't what you're looking for.

      You and your girlfriend can distill your plans about the property into a signed agreement. It's a much better idea to deal with this now than wait until a break-up when people are mad at each other about unrelated matters.

      The difference is that you can have an agreement just about the property, or you can have a co-hab agreement that could potentially cover every asset you own or will get while you're with her.

      Lynne

      Delete
    2. Here I am replying to my own reply, but I want to add that you cannot think about this as simply "adding" her to your title. Once you "add" her, she has the same ownership rights that you do and it's no longer just yours. So tread carefully.

      Lynne

      Delete
  61. I like to know what is joint tenancy.

    Also

    Is there a time line after a court probate the estate to pay the beneficiary.

    In my case the court probate is done the executor was told he had to sell one table.

    The lawyer said after the table is sold and the money is in the estate account then the court will sign off and the estate money can be distributed.

    I am moved that the court gave the executer 10 % of the estate and paid two lawyer both 1600.00 from a 30,000.00 estate.

    I thought the court would be fair

    ReplyDelete
    Replies
    1. Hi Richard,
      Joint tenancy is a way of owning an asset by two or more people. One of its most important features is a right of survivorship, meaning that when one owner dies, the other one owns the asset. The individual owners cannot sell or give away the asset while the other owners are alive.

      Why was the court involved in giving the executor a fee? Was there a passing of accounts? The courts don't get involved in setting an executor's fee unless the fee is disputed and can't be resolved.

      Normally an executor receives up to 5% of an estate (less if it is not complex) but you mention in your question that the "court will sign off" so it sounds like there was a court application of some kind (again, perhaps passing of accounts?). If there was a court fight, then sure, the executor could get more than the usual amount.

      The other possibility is that the executor asked for 10%, and you were given the impression that the court would grant it if you did not agree to it.

      The facts as you've given them don't quite hang together. I don't understand the involvement of the court. Either you weren't given all the facts properly, or you didn't really get it all.

      Lynne

      Delete
  62. Hi, I will inform you once I receive more information.

    This is a email I received from the lawyer.

    She was not happy when I told her I would not approve accounting.

    Things just didn't add up, many missing receipts etc.

    She then raised her fee another grand.

    We are in the process of drafting the materials for the passing of accounts before a Master of the Court of Queen's Bench. A copy of the materials will be served upon you once they have been filed. The Affidavit will set forth the details of the Estate including the fees the executor is seeking.

    There is an email I received informing me accounts were passed but the covid19 is slowing things down.
    Whatch for my future post on how much was paid out to each lawyer, and the executor.

    ReplyDelete
  63. Master of the Court of Queen's Bench- See below and scroll to the Canadian part.
    https://en.wikipedia.org/wiki/Master_(judiciary)

    ReplyDelete
  64. Hi Lynne,
    I hope you are well during these covid times and staying safe. Thank you for your article and taking the time to respond to all of our questions.
    Im on the other side of the road here. My now husband, owned a home for 10 years before I met him. When I met him he was out of a relationship and was floating the house by paying only the interest on the mortgage. He was thinking of selling the house cause he couldn't afford it on one income. When we got engaged, we spoke about it and said that if we ever wanted to own a home/live in a home, now's the time as we would never be able to afford it in Toronto. We've been married for 5 years now. I have been contributing towards the mortgage and bills. My name is not on the deed or mortgage. Because this is our matrimonial home, should a anything happen to him, the house will be transferred to me. If we get divorced it will be split 50/50. Is there any reason to put my name on the deed and mortgage besides to accrue debt and have my name on a piece of paper that entitles me to the house anyways? What would you advise?

    ReplyDelete
  65. Hi Lynne,

    I own a house (single ownership). It is a matrimonial property as we were married when I bought the house. If I pass away would the house automatically go to my wife or do I need to create a will for that?

    Thanks
    Rohit

    ReplyDelete
    Replies
    1. Hi Rohit,
      That depends on where you live. The different provinces deal with matrimonial homes differently. For example, in AB, the spouse can live in the home for 90 days but the title doesn't transfer to her. In BC, the spouse has 180 days to claim the home, but it is subject to paying estate debts first and even then the spouse has to buy it, and doesn't get it automatically. In ON the house is treated like any other asset and does not transfer to the spouse. In NL, the spouse automatically get the house.

      So as you can see, there is no answer that applies to all provinces and territories.

      Lynne

      Delete
  66. Hello Lynne,
    Just reading your blog, wealth of information.
    My mother recently passed away.We are in the process of clearing the contents in her home. As per the previous comments our mother put her four daughters on the title on her home.
    We were told that it does not go through probate. Two sisters want to be paid out and the the two have different ideas.Should all four sisters have the key to the house. Only one of the sisters has the key. Legally we should all have it right.
    I know the house needs to be assessed at market value.

    ReplyDelete
    Replies
    1. Things are getting tangly here because there are people who own the title to the house, then there are the contents of the house. Owing the house does not mean owning the contents. Even if the will leaves everything to the four of you, the contents are controlled by the executor. She is within her rights to keep others out until she either removes all of the contents herself or distributes them to the beneficiaries. Within reason, of course. She can't withhold the keys forever. People need to slow down on what they're entitled to and give her a chance to do her job.

      Lynne

      Delete
  67. Thank you for the very detailed information.
    But the original question was about the process of adding somebody to a title (once you decide that you actually need it), and I was not able to find an answer to this question.
    In particular i would be interested to know, if and how current mortgage on the property might be affected.

    Thank you,
    Mike

    ReplyDelete
  68. What if you need to add someone to a title to avoid abutting properties to merge in Ontatio? My home's title is under my name and I have just inherited the house next to mine but if I put it under my name, both title will merge into one by some silly Ontario law. I do not want that to happen. How do I avoid this? I dont have a spouse and my kids are 16 and 18 years old. For tax reasons, I also want to avoid putting the house under a corporation. Not sure what to do.

    ReplyDelete
  69. Hi Lynne, I believe someone here had a similar question but I didn't see a response. My grandma and I live together and she would like to leave me the house. Would it be better to add my name to the home now or to put the house in the will? We have a small family and everyone knows that these are her wishes, but she would like to makes it as easy as possible. She is 91 and is still in good health, but also understands that this would be like giving me 50% of the estate. I would like what is best for her and was hoping you could offer some advice. Thank you so much :)

    ReplyDelete
  70. I had to pay two lawyers one 1600.00 another 1600.00, and the executor got 5000.00.

    On a 30,000.00 inheritance so there you go the court gave them everything they wanted and the heck with balancing the accounts that did not happen. Now I have no faith at all in the court system.

    ReplyDelete
  71. Hi Richard,
    Lawyers and court applications are expensive, that's for sure. When there's a dispute over something in a small estate, it may well be eaten up by legal fees.

    Why the executor would get that much on a small estate, I don't know, but obviously there was some kind of dispute or problem.

    Fortunately, for each negative case like yours, there are a dozen success cases through the courts.

    Lynne

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  72. Okay but what if i'm living in house owned by my father what is best way to deal with that if anything happens ?

    Bridging Finance Brokers

    ReplyDelete
  73. Hi Lynne,
    We are residents of Delaware,in the US. My parents built a cottage on an island on a lake in Ontario back in 1959. Our family has spent much of the summer up there every year since - in fact, this past summer was the first my mother has missed (she is now 91) since 1959.

    My question, like many others you have no doubt received, involves disposition of the house and property when my mother passes away. There are no liens of any kind against the property.

    We have consulted a couple of attorneys over the years and gotten conflicting information on the best way to prepare for this. My father died in 1992 and my mother's will leaves the property to me. I am unsure whether anything was done to change the deed for the Canadian property after my father's death or not - or if it even needed to be?

    My mother has lived with my husband and me here in Delaware since the 3 of us purchased a house in joint tenancy in 1993. Would it be possible to change the deed for the Canadian property to a joint tenancy deed for my mother and me? If so, would that even be the right thing to do? Or should we just leave it alone, with her bequeathing the cottage and property to me in her will? And if we do that - am I correct that I will then owe non-resident capital gains tax on the increase in the property's value from 1959 until whatever year my mother passes away? And, if so - how is that value assessed?

    Thank you. We are, of course, trying to find the least financially painful way to handle this and it is overwhelming.

    ReplyDelete
  74. i moved to canada, ontario 19 years back. My wife did not work then. I bought a house and put her nam as joint ownership. I am paying the mortgage since then and she has not payed a single mortgage. She is working since last 8 years with very good pay.

    She told me the other day I should leave the house and move out. She has been abusing me for many years. I take care of all the expenses i mean literally all at home including our child university expense, property, taxes, gas, hydro, groceries etc.. The only expense she pays is her car fuel expense, her clothing.

    I now worry that she will take my hard earned house away from me. There is 8 years of mortgage left.

    I want to remove her from the property title. She can have the property after my death.

    Please advise how you can help me.

    ReplyDelete
  75. My 75 year old father moved back to east coast Canada when his wife of 40 years died of cancer .. He used the money from the sale of their home to purchase a home in Nfld.My sister and I had great concern should he meet someone new who didn't have the best intentions or their own financial means to support themselves therefore becoming dependant on my father for everything including his home and property.So we thought in order to protect him from any kind of ill will we suggested he put one of us on the dead of new home at which time he decided to put both my sister and I on the deed. He has now met a lady 10 years younger and are now talking about marriage . I guess my question what rights Will she have with my dads home should he pass before her.

    ReplyDelete
  76. Hello,
    My Mom put my Sister and I on the Deed to her home over 20 years ago. Speed things up to the present day.... My elderly Mom is Stage Four Cancer and lives alone. She received home Care via PSW and Nurses daily. My sister and her have not spoken to each other in over 4 years ( their relationship was always strained ) My Mom would like to have her removed from the Deed but we all know she will not sign off on this. My Mom wants here share to go to me. I am the Executor of her Will and have POA. I am not sure if there is anything else I can do do avoid my sister getting a hold of her share of my Mom's Estate. This is such a stressful time for her emotionally, physically and I wanted to try to take some of this burden off from her, But after reading your very informative posts. I think that my sister will get her 20% share of Mom's home. Or is she in fact entitled to 50% when Mom passes? Thank you for any information that you can provide.
    Lisa

    ReplyDelete
  77. Hi Lynne hope you and your immediate circle is well considering the times we find ourselves in.
    I am hoping to clean up a mess before it comes to fruition ��. I bought a condo with my partner a few years ago but did not put her on the ownership so that we could benefit from me being a first homeowner. She was used as my guarantor for the mortgage though. She has recently been having health issues and I want to make things right by her. She's from the generation where you Have to Have something to show for yourself and to leave for your kids. As of right now not being on the ownership is weighing on her mind. She has 2 sons from a previous marriage both of which knows that their mom owns half the condo in theory but not on paper and they're fine with that. They also know her wishes for me to continue living in the condo should she pass before me until I deem myself no longer able to do so at which time it would be sold and half the proceeds will go to them and the other half to my beneficiary.
    Is there a way to make this proper without incurring a lot of cost.
    Regards
    Stay safe

    ReplyDelete
  78. We are thinking of doing this because we all live together anyway and we love the house and don't want to sell. But we need to put our daughter and son in law on the mortgage as well, since we're retiring soon.

    ReplyDelete
    Replies
    1. Well, you know the risks. If anything goes wrong, you were forewarned.

      Lynne

      Delete
  79. Lynne,

    A little story. Actually, my little story.
    My forever ongoing estate matter. What a lawyer tried to get me to do. There is a house involved. My then lawyer suggested I put the estate property in both our names. I am the executor. Only 2 beneficiaries. Lynne, I can think of 2 reasons not to do this. 1) Once we are both on title, neither one of us can sell the property without the other agreeing. 2) Should I die then the property automatically goes to the other beneficiary and not to my estate. 3) is there a 3rd or a 4th reason? Lynne, If incorrect, please jump in? Who is my lawyer working for? Me, or the other side?
    Webeye

    ReplyDelete
  80. My sister and I jointly own a home with my father with no mortgage. He is now planning to marry . Should he die what rights does his new wife have .

    ReplyDelete
  81. Hey Lynne,
    Years ago my parents added my sister to the deed of their house. In their will it states everything is to be split 50/50. My sister seems to think the house is entirely hers. Is she correct.
    Thanks for your time.

    ReplyDelete
    Replies
    1. Hi K,
      The presumption in law is that the house is still in the estate and does not belong to your sister. In order to overcome that presumption and keep the house, your sister must have some solid evidence of your parents' intentions for the house. Just adding her name is not enough because there are plenty of reasons why people do that. It's on her to prove your parents wanted her to have it.

      Lynne

      Delete
  82. Hi Lynne
    I found you when I was searching for "how to add name to title". My mother owns a small condo in downtown Toronto. It is not her principal residence. It's an investment property that currently sits vacant. She wants to add me to the title to avoid capital gains tax after she passes on. I am an only child and financially stable. Any reason not to do this?

    ReplyDelete
    Replies
    1. Here are a few things to consider.

      1. If the condo has increased in value while your mother owned it, she will trigger the capital gains tax liability when she adds you to the title. This is because people aren't just "added". It's actually a transfer from A (your mother) to B (your mother and you). Depending on your mother's financial liquidity, paying tax right now might not be as easy as paying them out of her estate later.

      2. Putting you on the title won't avoid capital gains on her death. It will just share it between you.

      3. If something happens to you, such as divorce, a car accident that exceeds your insurance policy, or you get sued by someone, this could result in a loss of the property for both you and your mother.

      Lynne

      Delete
  83. HI there - I am glad I found this string of questions. We are purchasing a home and my common-law spouse will be the only one on the mortgage, but I am supplying the whole down payment and want to be on title. Can I do that? What do I need to do to protect myself? Any particular legal forms or documents?Thanks so much.

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