If you’re thinking of putting assets into joint ownership with your children, read this first
There are some things you should be aware of before you set up joint accounts with your adult children to protect your assets from being subject to probate fees upon your death. Firstly, understand that probate fees or taxes are different in every province and territory. In Alberta, there is a flat probate fee, which caps out at a maximum of $525. In addition, there are risks, such as triggering the deemed disposition of your share of the asset when adding a joint beneficial owner. Furthermore, family squabbles may still occur and result in your assets not being distributed as you wish. Plus, the money could be taken if your children have any outstanding credit as a recent court case demonstrated. Use of multiple wills and trusts, among other strategies, will likely be a better way to handle your assets and still save money.
“While there may be a variety of reasons Canadians seek to put an asset into joint names with right of survivorship, for most, the primary motivation is the potential savings of probate fees (or tax) upon death.”