Estate Planning

/Tag: Estate Planning
Jun 12, 2018

Down Payment Dilemma Part II: To Gift or Not To Gift?

2018-06-12T20:42:41+00:00June 12th, 2018|Financial Planning & Tax|

Previously, we wrote about the risks of gifting your children a down payment in today’s housing market. Stifling mortgage payments, rising interest costs and house price corrections all need to be considered, particularly in hot Canadian real estate markets like Toronto and Vancouver where even modest housing price corrections can wipe-out generous gifts.  Still, providing financial assistance to loved ones remains at the top of many parental wish lists, with down-payment support ranking about as highly as the desire to help with education costs.  Options like these are also often preferred to cash gifts if there’s any doubt about an [...]

May 18, 2018

House Rich, Cash Poor: Beware of Strangling Your Kids with Debt

2018-05-22T19:16:36+00:00May 18th, 2018|Financial Planning & Tax|

It’s a question clients ask us a lot: can we, or should we, gift our kids cash for a down payment on their first home? It’s a thorny issue that puts parents in a tricky spot. Most parents’ gut instinct, of course, is to do everything they can to help their children. But in this case, doing so could do more harm than good. We’ll give you three reasons why in a moment. It’s easy to see why more parents are giving their kids an assist in cracking the housing market, especially in big cities like Toronto, where the average residence [...]