When a parent helps a child buy a home:

1. There are tax implications. For example, will capital gains on the house become taxable?

2. There are estate planning implications. For example, if the parent dies and the title is joint, does the child get it? Are other kids being unfairly deprived? Should the parents revise their Wills?

3. How do parents protect the property from the child’s creditors or the child’s divorce?

A Declaration of Trust is a simple one page document that can often help. To do that Buyers need to contact me early in the process and preferably prior to finalizing any new mortgage being placed on the property. Please feel free to have your clients call me in those circumstances.

-Bill Fric

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