Q: I’d like to give my children about $100,000 as a cash gift to get it out of my estate and away from the tax man. Is it possible?
—B & R, Kelowna, B.C.
A: Cash is king when it comes to passing a gift to your kids. “There will be no tax payable on the gift by either the donor or donee as Canada doesn’t have gift or estate tax,” says Grace Chow, a tax specialist at Cadesky and Associates in Toronto. However, if the gift is in the form of an asset, like a cottage, the asset will be deemed to be disposed at fair market value and you will owe tax on 50% of the appreciable gains. I wouldn’t call it a tax grab, but I think you might.