Legal Question in Wills and Trusts in Canada

Re: deed

As an Alberta lawyer I cannot comment specifically on Ontario Law. However I suggest you obtain an opinion from a lawyer in Ontario about the effect of the Family Law Act in Ontario.It has some very broad powers to protect the interests of a spouse upon your death. You also need to consider that your spouse will have a dower interest in the house ( I believe) which would give her a life estate in it, ie the right to live there as long as she lives or to rent it out and keep the rental money. Also if you put the house in your childrens' names as non-residents they must obtain a non-resident compliance certificate from the Canada Revenue Agency when the house is sold which requires them to pay the CCRA 25% of the net sale proceeds to CCRA on the sale subject to some reimbursement. Also as a resident of Canada living in the house any capital gain on the house should be tax free if you are the registered owner. As non-residents your children would have to pay tax on the capital gain. Perhaps you should arrange an agreement in writing with your wife where she waives any interest in the house in return for insurance proceeds or other assets. Your current plan needs a lot of modification.