dgagitw

So....I'm aware of the attributed income thing. That is, if I give something to my mrs who then sells it, I still have to pay the capital gains if that would be more than the tax she'd pay. But how does this work with cash? If I give her 50 bucks to buy something for me when she's out and she keeps the 5 bucks change, are we theoretically supposed to track that in case she gets any interest on it later? Anyone know?

plasticcanuck

Were you heavily into the sauce when you wrote that?

Aviator

Depends what you give her the $50 for and what she does with the change!

scilly

Surely if you have at least 1 joint bank account, joint ownership of property, and share living expenses, etc etc ................ there isn't anything to worry about? Who can really tell who spent what when

Besides which, how much interest can you make on $5?


FWIW ............... we have 3 accounts that operate as joint, but we each have a couple of accounts under single name, except that our Financial Manager and Estate Lawyer both suggested that I allow OH's name to be added to my accounts and he did the same for me.

Apparently this will make it easier when one or t'other of his kicks out clogs for the survivor to sort out the "estate". Otherwise the individually operated accounts will need all kinds of legalities before whatever is in there can be added.

But also be aware that if you have internet access to bank accounts, same bank credit card(s), TFSA you can see each other's accounts. Fine if you have no secrets from each other.


Re TFSA accounts ............... add the spouse as Survivor. Then he/she can continue with the account. If you add spouse as Bequest, he/she has to draw the money out.

JonboyE

There is no lower limit on transfers so, in theory, yes. Common sense is used in practice.

The easiest and most effective method of income splitting if both spouses work is for the higher earner to pay all the non-deductible family expenses: groceries, utilities, mortgage etc. This leaves the lower earning spouse with more of their income to invest.

You can also achieve effective income splitting by a loan at the prescribed rate but you should take professional advice before doing this.

JonboyE

A joint account will automatically become the property of the surviving account holder on death.

If an account in is a single name it has to be included in the deceased's estate. Some banks have a mercy rule where they do not require a probated will in order to release small amounts. Otherwise, you have to wait several months until the will is probated before you get access to the funds.

There are no probate fees associated with joint accounts. The government will get 1.4% of the amount in a single named account.

scilly

Yes, that was all explained to us, but I didn't mention it in full as I'm not qualified to give financial advice, other than what we had been advised to do by those who are in the industry.