Give a living inheritance to your family

family meeting
Mark Price
October 17, 2022
linkedin iconfacebook logotwitter logo
family meeting

The ageing of the Canadian population is causing a dramatic redistribution of wealth. Younger generations will continue to benefit from the over $1 trillion that Baby Boomers are currently enjoying as an inheritance from their parents. Its magnitude is completely unparalleled. There has been a shift in the timing and manner of these monetary transfers. Increasing numbers of Canadians are opting to leave their riches to loved ones while they are still living.

Exactly what does the term "Living Inheritance" mean?

Normally estates bequests are communicated through wills and given out after a person's death, but when someone leaves money or other assets to their loved ones while they are still alive, they are said to have left a "living inheritance."

click to talk about a reverse mortgage

Why is there a rise in living inheritances?

Financially savy Canadians who have invested wisely, plus thanks to the dramatic increase in house prices, now have significant assets that on their passing will be passed onto their children.

Unfortunately, at the same time, with the increase in the home prices, many first time family members are finding it very difficult to buy their own home.

There is also the issue of strategic tax planning.

Why not pass some of your children's inheritance to them now, while you can see them enjoy it?

There  has been a recent trend toward an earlier start in the process of  transferring wealth to heirs.

What a living Inheritance is and how it helps people?

It' s true that the concept of a living inheritance is novel and wasn't frequently used before, but its popularity has skyrocketed in recent years. More than 60% of baby boomers, according to some estimates, intend to leave a living bequest to their descendants. Canadians are increasingly choosing to leave their wealth to heirs who are still alive.

Housing market access

Rising housing prices make it more challenging for first-timers to enter the market. Many young Canadians have good jobs and enough money to pay their mortgage, but many have a hard time saving for a down payment. Many parents are now helping their adult children follow in their footsteps by assisting them in saving for a home's down payment.

Strategic tax planning

The taxation of inheritances differs from one jurisdiction to the next and from one form of asset to another. We recommend that you discuss this option with your accountant and financial planner to discuss the best strategies for transferring wealth to loved ones while minimising tax implications.

Know where your assets are going

It is a known truth that the wishes expressed in people' wills are not usually strictly adhered to. Beneficiary arguments are common, and they have caused more than one family breakup. To guarantee that your children, grandchildren, and other loved ones receive their fair share of you restate, a living inheritance is a great option to consider. Being present and communicating your intentions clearly to all parties helps avoid confusion and miscommunication.

This is the best part.

You get to see your children enjoy their inheritance while you are alive. Maybe it is a family trip that every member of the family goes and make life time memories.

click to talk about a reverse mortgage

Is it possible for me to create a Living Inheritance?

There are a number of steps you may take to ensure that your heirs receive a sustainable income stream from your estate. In certain cases, the quickest and most equitable way to divide up assets is through a sale and subsequent distribution of the funds.

A reverse mortgage is an alternative that is gaining popularity in Canada. Canadians over the age of 55 can apply for a Reverse Mortgage and take out up to 55% of the value in their house.

In exchange for never having to make a payment while you are living in the home, you get to stay there for as long as you choose, and you retain full ownership of the property so you can benefit from any future appreciation.

Many Canadians are beginning to see that it isn't necessarily necessary to wait until they pass away to start helping their families with the wealth they have accumulated. Considering the possibility of leaving a living bequest to loved ones and wondering if a reverse mortgage could help? Reach out to us at 250.212.4424 or through this contact here.

Share this post
linkedin iconfacebook logotwitter logo
family meeting
Mark Price
Director, Mark Price Mortgages

More Posts

arrow left
arrow right
family hugging and smiling

5 unexpected uses for Reverse Mortgages

Here 5 unexpected uses for your reverse mortgage.
family hugging and smiling
Mark Price
October 24, 2022
reverse mortgage loan image on computer screen

Taking out a reverse mortgage loan: A guide for 55+ homeowners

A guide on how to take a reverse mortgage for 55+ homeowners.
reverse mortgage loan image on computer screen
Mark Price
October 24, 2022
man paying by credit card reverse mortgage with bad credit

Reverse mortgage with bad credit

Have bad credit but need finance? Here's our guide.
man paying by credit card reverse mortgage with bad credit
Mark Price
October 24, 2022
couple looking at computer

I need to get rid of my Debt!

Need to get rid of your debt? Here's our guide.
couple looking at computer
Mark Price
January 9, 2023
stressed older women

Cash flow issues in retirement

Having cash flow issues in your retirement? Read this...
stressed older women
Mark Price
October 21, 2022
three people talking

Making accessibility renovations to your home

How to make accessibility renovations to your home. The complete guide.
three people talking
Mark Price
October 23, 2022
man thinking about Mortgage stress test Canada

Mortgage stress test Canada

What is Canada dreaded mortgage stress test?
man thinking about Mortgage stress test Canada
Mark Price
October 24, 2022
older couple hugging and happy

In-home care versus long-term care facilities

Is in-home care better than long-term care solutions?
older couple hugging and happy
Mark Price
December 6, 2022
family meeting

Give a living inheritance to your family

Want to give a living inheritance to your family read this.
family meeting
Mark Price
October 24, 2022
older man applying for a reverse mortgage

How to apply for a Reverse Mortgage

How to apply for a reverse mortgage, the complete guide.
older man applying for a reverse mortgage
Mark Price
October 23, 2022
older man holding his hand up

The Home Equity Lender Guarantee

Learn about the home equity lender guarantee.
older man holding his hand up
Mark Price
October 21, 2022
older couple sitting on the sofa

Comparing reverse mortgages to Home Equity Loans, (HELOC) and alternative financing strategies

We compare reverse mortgages to home equity loans, (HELOC) and finding alternating financing strategies.
older couple sitting on the sofa
Mark Price
December 5, 2022
couple happy they read the true facts about reverse mortgages

True facts about reverse mortgages

We discuss the myths vs the facts of reverse mortgages.
couple happy they read the true facts about reverse mortgages
Mark Price
October 21, 2022
couple want to know what is a reverse mortgage canada

What is a Reverse Mortgage?

What is a reverse mortgage? In this post, we explain it all and how it works.
couple want to know what is a reverse mortgage canada
Mark Price
October 23, 2022
© 2022 Axiom Mortgage Solutions
1425 Ellis St, Kelowna, BC V1Y 2A3, Canada