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When you add a joint owner to an asset, you give up control of this asset. This results in a hindrance in the process of mortgaging or selling the property in comparison to when you were the sole owner.

When considering adding a joint owner to one of your assets, care should be taken as jointly owned property with someone else (a child) could be exposed to family property claims if that person separates or divorces.

As another year ends, it is important to review your finances and see if there are ways to improve your tax position heading into the new year.

On death, the automatic transfer of an asset to an individual rather than to the estate can result in tax inequalities as the estate would be liability for tax on an asset it does not own. This will not be an issue if the asset was owned by individuals who were married or living common-law, as defined in the Income Tax Act.

In recent years, probate planning has become a more recognized topic in estate planning discussions. This is due to the increases in probate fees in jurisdictions such as Ontario. In many provinces however, probate fees are essentially NIL. Even when considering provinces with ‘high probate fees’, the costs associated with probate planning may outweigh the fees incurred.