Why it’s worth considering an early inheritance 

Have you ever considered helping your children financially? An increasing amount of baby boomers are gifting their children money for a down payment on their first home or simply gifting them money for other purposes. In fact, according to statistics from Mortgage Professionals Canada, gifts from parents for home purchases have doubled from 7% in 2000 to 15% between 2014 and 2016.

For those who choose to gift an early inheritance, their reasons are often as simple as being able to enjoy watching their children use the money to better their life, rather than wait till they pass.

Financial benefits

An early inheritance avoids probate fees (estate administration tax), which can be as high as 1.7%, depending on your province. Gifting income-generating investments can also save you money by bringing you down to a lower tax bracket. Your tax specialist can tell you more.

An early inheritance can help your children:

• Make a down payment on their home

• Pay for their childrens’ education

• Help them start up a business

• Pay for a wedding

Give me a call at 250-826-5857 if you would like to talk more about how a CHIP Reverse Mortgage can help you leave an early inheritance to the ones you love.