Inheriting property can be an exciting time in your life. There can also be mixed emotions depending on the circumstances. The number of older Canadians is growing. This has caused the most significant number of inheritances Canada has ever seen. This trend is still on the rise.
If you are the estate’s executor, you will have several responsibilities. The executor must pay the income taxes owed by the estate before distributing the estate to any beneficiaries. In the case of real estate, the government considers that the person disposed of the property just before they died. The market value of inherited properties is deemed to be tax-free if the property was designated as the principle residence of the deceased.
The great news is that there are no inheritance taxes in Ontario. This means that there are no taxes that a person who inherits from an estate must pay. However, there are some situations where taxes or charges such as water, hydro or municipal taxes might be owed on your inherited property.
Now that you are the inherited property owner, you must consider your next steps.
Your REALTOR® can assist you with evaluating these questions.
Inheriting a property from family members can be a very emotional time. It is essential to keep family memories and emotions separate from making the best decision for you and your family. Your REALTOR® can help by offering their objective, professional opinion in these emotional times.