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  • Feb 3rd, 2021 2:53 pm
Sr. Member
User avatar
Jan 31, 2016
909 posts
Kawartha Lakes

Gifts before passing

Good day,

I'm having hard time getting a straight answer.

Is there any benefit to gifting monies from a basic savings account to the beneficiaries before death? Is there a limit or possible tax implications?

Thank you in advance.

Edit to add location - Ontario
Those who dance are considered insane by those who cannot hear the music - Carlin
4 replies
Sr. Member
May 29, 2012
587 posts
Southern Ontario
if gifted before passing could avoid probate fees, the funds would also not be part of the estate and covered by the working of the will if the person receiving the funds is not listed in the will.
I know for registered accounts like TFSA and RRSP you can name a beneficiary so that it is outside of probate fees and dont have to give the money away before death.
Another option is joint account where if one dies full ownership goes to other account holder.

disclaimer: I am not a lawyer, so I could be totally wrong
Deal Addict
Jun 26, 2019
1901 posts
Generally speaking @tony311 is correct, you would save 1.5% if you gift it out.

There could be issues with this, but generally speaking as long as its going to the right places and everyone is on board, you should be fine.

Long story short, consult a lawyer for the nitty gritty.
Deal Expert
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Feb 8, 2014
24287 posts
Socially Distanced
Remember that if you gift it before death you might not approve of how they spend it or if they spend it right away. So don't do this if these things could bother you.
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
Deal Expert
User avatar
Sep 1, 2005
16895 posts
You need to caveat the "Joint" option and tax and risks of joint ownership.

if you're giving before passing inequitably, there is a risk of someone who's getting less to be "not happy".

If you gift...you can do "recalls".
We're all bozos on the bus until we find a way to express ourselves...

Failure is always an option...just not the preferred one!


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