Parents often want to help their adult children, sometimes becoming the “Bank of Mom & Dad.” If your child and their partner move into a family property (like a cottage or home), it’s important to protect your investment while still being generous.
Steps to consider:
• Create a simple tenancy agreement & collect modest rent (this even helps at tax time!)
• Report it properly with your accountant
• Add legal safeguards in your will or through post-nuptial agreements
• Keep your wills updated
The key takeaway: support your child, but be strategic so your hard-earned property stays protected.
Always confirm details with trusted legal & tax professionals! We have the best in Toronto, so feel free to ask us to introduce you.
Parents often want to help their adult children, sometimes becoming the “Bank of Mom & Dad.” If your child and their partner move into a family property (like a cottage or home), it’s important to protect your investment while still being generous.
Steps to consider:
• Create a simple tenancy agreement & collect modest rent (this even helps at tax time!)
• Report it properly with your accountant
• Add legal safeguards in your will or through post-nuptial agreements
• Keep your wills updated
The key takeaway: support your child, but be strategic so your hard-earned property stays protected.
Always confirm details with trusted legal & tax professionals! We have the best in Toronto, so feel free to ask us to introduce you.
, it’s…){kind=link}