Another little-known tip is a provision in the Property Transfer Tax Act that eliminates the requirement for this tax when a principal residence is transferred between related individuals, including a parent and child. This means parents and children could “swap” homes without paying property transfer tax; or, if the parent moves on to supported housing a child could purchase and move into a parent’s home without paying property transfer tax, within specific guidelines.
It’s important to remember that whenever your housing situtation changes, it may affect your overall estate planning needs. It’s important to ensure your Will, Power of Attorney and other important documents are up to date. This is particularly important if yours is a blended family as the type of ownership of the home impacts your estate plan.
These tips can add up to substantial savings and peace of mind for baby boomers, seniors and their families.
BC Notaries provide legal services for more than half of all real estate transactions in B.C. They understand the unique needs of downsizing boomers, seniors transitioning to supportive housing, estate sales and clients who want to refinance their mortgage to free-up funds for other priorities.
If you have questions about your or your parents’ options, see your Notary for expert advice.
About BC Notaries:
The Society of Notaries Public of BC represents more than 340 highly trained Notary professionals. Most have locally owned and operated offices and all provide personal assistance to clients around the province. Individuals, families and businesses seek the services of BC Notaries for a wide range of non-contentious legal matters, including residential and commercial real estate transfers, mortgage refinancing, Wills and advanced healthcare planning, powers of attorney, and other important documents.
The Notary’s Tradition of Trust spans 2000 years. Notaries first came to British Columbia over 100 years ago. They continue to serve their valued clients and their communities across the province. For more information, please visit www.notaries.bc.ca.