In this article, we'll explore some of the most common options for leaving money to family members while you're still alive, specifically in the context of Canadian tax laws.

Gifting

One of the simplest ways to transfer money to family members while you're still alive is through gifting. In Canada, there is no limit on the amount of money you may gift.

Gifting can be a great way to provide financial support to family members while you're still alive. You can use the funds to help pay for education, medical expenses, or simply to provide financial assistance to loved ones who may be struggling.

Trusts

Trusts are another option for transferring money to family members while you're still alive. By setting up a trust, you can transfer assets to a trustee who will manage the funds on behalf of the trust's beneficiaries. This can be a great way to provide ongoing financial support to family members while also protecting your assets.

In Canada, trusts can be set up in a variety of ways to meet your specific needs. For example, you may choose to set up a revocable trust, which allows you to retain control of the assets during your lifetime, or an irrevocable trust, which transfers control of the assets to the trustee immediately.

Family Trusts

Family trusts are another option for transferring money to family members while you're still alive. By setting up a family trust, you can transfer ownership of assets to the trust, with family members as beneficiaries. This can be a great way to transfer ownership of a business or real estate holdings to family members while also providing ongoing income.

One of the benefits of a family trust is that it allows you to retain control of the assets during your lifetime. You can continue to manage the assets and receive income from them, while also providing financial benefits to your family members.

Final Thought

It's important to consider the various options available for transferring money to family members while you're still alive. Whether you choose to gift funds annually, set up a trust, or establish a family trust, it's important to work with a financial professional to ensure that you're making the best decisions for your unique situation.