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Parents may add a child as joint owner on an asset to save probate fees. If this is done with a right of survivorship and the child is noted as a true joint owner, the child will receive the asset upon passing of the parent.

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.