Quote:
Originally Posted by Slava
Yeah that's a potential issue, and if you're talking about a significant amount of money, taxation is another one. That's probably not as big an issue if it's a bank account, because the interest rates aren't that high (which begs another question), but if yoh have those funds invested or into something like a GIC, you might end up paying tax on that gain.
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If it’s done solely for estate planning I think the risk of a tax problem is minimal. When I had clients who wanted to do that I’d get them to sign a letter indicating that the move was done only for that purpose and the money was owned and the tax obligations were the responsibility of the one whose money it was. There is virtually no chance CRA would go after a few hundred dollars. I’d always include in the file a note that the client agreed that this was initiated by them and I’m not responsible for any taxes, or send a client email confirming that understanding.