Quote:
Originally Posted by burnme
Are there any accountants on here who could help me understand this. If I cosigned a mortgage with my kid, does one automatically have to register it as a "Bare Trust"? Or would one only have to register it, if and when the main owner passes away? I read some stuff on the CRA page, and I am having a hard time deciding my position. Thanks, in advance!
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How did you arrange title ownership? Joint Ownership or are you a tenant in common?
If joint ownership… when you die the house automatically becomes your kids. Won’t be part of an estate. May have issues in the event your kid divorces as it isn’t inheritance. Also any other kids can’t share in your portion legally.
I would err on the side of caution in an CRA question and just call them up. AOF members sleep occasionally at Holiday Inn Expresses… but we still aren’t the experts.
To my read on this… if a joint owner… it’s not a trust. If you own a home or a partial share and have full control over the home for your child… that would more likely be a trust… especially if funds are controlled by yourself.