Transferring Inheritence to a Spouse?

wilyam wrote: ↑Is it possible to gift a portion of a large inheritance over to your spouse ex. $500k and invest this money under her name? Theres obviously tax advantages to doing this in both reg and non reg accounts, just wondering what the CRA says about this?

M8Rxmjsik wrote: ↑ Canada does not have gift taxes, period. You can give as much as you like to your spouse whenever you feel like it.

However, if you give money to spouse or related minor child, AND the gift is used to earn income, then the income from the gift is attributed back to the giver: https://www.taxtips.ca/personaltax/attributionrules.htm

You might be better off making a loan to your spouse at the prescribed rate (which is currently 1%) https://www.taxtips.ca/personaltax/lend ... -child.htm

Talk to an accountant or a good financial advisor.

wilyam wrote: ↑Thanks for links, it mentions attribution rules only apply to dependant children and spouses, so if I gifted this money to a sibling, the income earned wouldn’t be attributed back to me?

M8Rxmjsik wrote: ↑ It doesn't say dependent children, it says related minor child.

So if your sibling has reached the age of majority, attribution rules don't apply.

However, do you trust your sibling with $500k? I don't think I would

wilyam wrote: ↑Im curious why safeguards were put in place to prevent tax savings, income splitting from gifting between spouses and related children, but not between close relatives or siblings?

wilyam wrote: ↑ Im curious why safeguards were put in place to prevent tax savings, income splitting from gifting between spouses and related children, but not between close relatives or siblings?

FrancisBacon wrote: ↑ Because no one would (should) trust their close relatives with that much money.

fogetmylogin wrote: ↑ But your husband is ok??

fogetmylogin wrote: ↑ But your husband is ok??