I have a client that inherited many millions $.
they invested with several different wealth managers.
we have discussed spousal loans with them, agreement made and interest paid
Have you seen any audits where CRA looks at trail of who made the initial investment and not allowing joint if names on slips are joint?
thx
Yes. CRA did an audit some years back on High Net-Worth Individuals (“HNI”) and looked at the HNI relationships - spouses, sibs, kids, other relatives, controlled (or not) corps and trusts. VERY comprehensive.
They won’t bother Joe and Jane with their $10K investment split, but when it’s $20 million…yah…they’ll be asking questions.
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thank you for the information.
they have over $5 million
no kids (unless they adopt me)
they want to do what is right and realize if they don’t want to do spousal loans there could be tax implications and audit.
Are you saying that one spouse inherited the $5 million and wants to transfer some of it to the other spouse?
Investing it in accounts as JWROS may be beneficial at some point in the future when one spouse dies - makes it easier for the surviving spouse to access the funds. But, the income (for tax purposes) will be attributed to the spouse that actually contributed the funds to the account. Some of it could be contributed to the “other” spouse’s RRSP and/or TFSA, but I’m sure that won’t make much of a dent in the $5 million.