Family members often want to transfer property titles within the family. However, this process has legal and financial implications. Property transfer requires the assistance of a real estate lawyer in Ontario.

This article will cover the legal implications of familial property transfer in Ontario, including the reasons for transfer and the importance of legal counsel.

There are several reasons why you might be considering transferring property to family in Ontario:

• A parent giving a child the opportunity to enter the real estate market.
• Planning for the future with estate or succession planning.
• Adding or removing a spouse from title.
• Helping children or family members afford a home.
• Avoiding future family disputes.
• Planning for long-term care or incapacity.

1. Gifting property during your lifetime

Property can be transferred to family members as a gift while you’re still alive. For example, a parent may gift a share in a property to a child, or a married individual may add their spouse on title out of love and affection. Legal and tax considerations will apply.

2. Adding someone from your family to title

An owner can add a spouse or child to title, creating ownership as joint tenants or tenants in common. This can simplify future transfers but may impact liability. Legal and tax considerations will also apply.

3. Transferring through a Will

A property can be transferred after death through the instructions in a Will. This process usually occurs as part of estate administration in Ontario and involves important executor duties (Ontario-specific).

4. Transfers involving the Power of Attorney in Ontario

A person acting under a Power of Attorney may transfer property on behalf of someone who is incapable. These transfers have to follow strict legal duties as stated in the Power of Attorney document and in legislation.

There are several legal considerations to be aware of when considering transferring property to family members:

• A lawyer must register the transfer with the Ontario Land Registry Office.
• Transferring title may reduce control over future decisions involving the property.
• Land Transfer Tax and Capital Gains Tax may apply.
• A survivorship application or probate certificate is needed for transfers after death. The process becomes part of estate administration and executor duties.
• Transfers can create risks involving creditor claims or future family disputes.

Ontario law states that only licensed real estate lawyers can file documents for title transfers.

It is also important to understand the different ways family members can hold ownership of property in Ontario.

When multiple individuals own a property as joint tenants, a deceased owner’s interest passes to the surviving owner(s) by right of survivorship. This arrangement is commonly used by spouses who jointly own a property.

However, joint tenancies can also be severed. For example, where property is co-owned with investors or an ex-partner, severing the joint tenancy allows each owner’s share to pass to their beneficiaries under their Will, rather than automatically to the surviving owner(s) via the right of survivorship.

Property can also be owned by multiple individuals as tenants in common, where each owner holds a defined interest in the property. Unlike joint tenancy, there is no right of survivorship. Upon death, the deceased owner’s share forms part of their estate and is distributed in accordance with their Will or, if there is no Will, under the rules of intestacy.

Property transfers require the assistance of a legal professional in Ontario. A lawyer should prepare the transfer documentation and register the transfer with the Land Registry Office.

Any transfer should align with your broader goals for estate planning in Ontario, so your property is handled properly. A lawyer can also prevent disputes and misunderstandings from arising.

When You Should Contact GS Brar Law

You should reach out to GS Brar Law as soon as you consider transferring your property to a family member. We have many years of experience in Ontario estate law, based in Brampton.

Call us at 1-905-291-3297 or book a free consultation online.

Transferring property is not something you should do alone, and it is important to get legal guidance early in the process. Our team is ready to help you through the next steps.

Give us a call or schedule a no-obligation consultation today.