I have couple clients that have parents on title for their children’s homes. The children pay the mortgage
Would this be considered bare trust?
thank you
If the parents can’t do anything without the beneficiaries consent, it would think it would be a bare trust.
What would implications be of adult children being on title of parents rental properties? Parents have no will either.
The implications would be for 2022 you have to file an UHT return and starting 2023 you will have to file a bare trust return.
For 2023 we might not have to file UHT returns anymore but that still isn’t law yet.
thank you for your replies - very useful as usual
Suspect that CRA could have a VERY different view of this, and, when the children sell the house parents will - absent any documentation - be in a position where CRA can assess against them.
Documentation of Bare Trusts is, in my experience, essential. Or documentation of a non-beneficial interest “for protection of capital” only or some such. But sitting with nothing…the parents are on title. Feds do a scrape search at Land Titles and see a sale with the parents and no disposition reported? Expect a call or a visit IMO, especially as more reporting is digitized.
Same situation for a child on title to prevent something happening with an elderly parent’s (or couple’s) home. Document the relationship, the decision and the fact that there is no beneficial interest accruing to the trustee.
Yes, get a lawyer to do this. Small expense; big hassle saved.
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