Question: my friend wants to help buy a house for their sister, but can't go on the mortgage because they don't qualify (my friend already has a mortgage and can't afford another). Can a Trust Agreement be used in that scenerio? They have money to give to their sister, but because of their income that might pose a problem but they also want to make sure there is some legal documentation regarding their personal money they are lending out and of course receiving a return after their sister sells the home years later.
In the perfect world, you would want to have the trust agreement completed at the time of property purchase. But trust relationship can exist verbally as well. It is best to reach out to Shawn Quigg directly to discuss your particular situation. After all, this is a legal relationship that you want to handle with care after taking into consideration of tax implication and legal implication.
It's always sad to hear insurance companies go to such lengths to invalidate an insurance claim. The chances are that the lady was having a good day and so went grocery shopping. Injuries are not static. She could have spent the last 4 days in pain and dealing with a flare up, and it is likely that her life was irreparably impacted by an injury, despite carrying groceries on that day. When you look at the stats, people are under-payed out by insurance and their lives usually go downhill from there. A slight margin of people commit insurance fraud, as assumed in this example. Take a walk into any addiction center, homeless shelter, or mental health services, and you will find all the people who didn't have a successful insurance claim and can't live a normal life anymore.
Hi, Cherry. Thanks for the great information. Learning a lot. May I ask you a quick question - I bought a pre-construction condo closing mid-2022 for the investment purpose, and paid 15% of deposits already in my name. In this case, can I still set up a new corporation, designate this as a beneficiary owner via the trust agreement to take advantage of the tax planning flexibility offered by a corporation? I saw one of your blog post and it says 'The Corporation needs to pay for the downpayment for the purchase of the property' to qualify this, which makes me feel a bit concerned.
Technically the corporation should have existed at the beginning when you sign off on the agreement of purchase and sale. If not, it doesn't mean that you can't do it, you're just exposed to more risk of being challenged by CRA. Make sure you schedule a consultation with my team or someone who's experience with real estate investing tax to get a better understanding before you go ahead.
Question: my friend wants to help buy a house for their sister, but can't go on the mortgage because they don't qualify (my friend already has a mortgage and can't afford another). Can a Trust Agreement be used in that scenerio? They have money to give to their sister, but because of their income that might pose a problem but they also want to make sure there is some legal documentation regarding their personal money they are lending out and of course receiving a return after their sister sells the home years later.
Thank you for this information
Thank you for this video!
Great video, funny I was looking into this recently 😊
Great information!
Does the Trust Agreement have to be completed at time of property purchase or can it be done afterwards? Can it be done years later?
In the perfect world, you would want to have the trust agreement completed at the time of property purchase.
But trust relationship can exist verbally as well.
It is best to reach out to Shawn Quigg directly to discuss your particular situation.
After all, this is a legal relationship that you want to handle with care after taking into consideration of tax implication and legal implication.
Amazing video👍🏾
Thanks!
It's always sad to hear insurance companies go to such lengths to invalidate an insurance claim. The chances are that the lady was having a good day and so went grocery shopping. Injuries are not static. She could have spent the last 4 days in pain and dealing with a flare up, and it is likely that her life was irreparably impacted by an injury, despite carrying groceries on that day. When you look at the stats, people are under-payed out by insurance and their lives usually go downhill from there. A slight margin of people commit insurance fraud, as assumed in this example. Take a walk into any addiction center, homeless shelter, or mental health services, and you will find all the people who didn't have a successful insurance claim and can't live a normal life anymore.
Hi, Cherry. Thanks for the great information. Learning a lot. May I ask you a quick question - I bought a pre-construction condo closing mid-2022 for the investment purpose, and paid 15% of deposits already in my name. In this case, can I still set up a new corporation, designate this as a beneficiary owner via the trust agreement to take advantage of the tax planning flexibility offered by a corporation? I saw one of your blog post and it says 'The Corporation needs to pay for the downpayment for the purchase of the property' to qualify this, which makes me feel a bit concerned.
Technically the corporation should have existed at the beginning when you sign off on the agreement of purchase and sale. If not, it doesn't mean that you can't do it, you're just exposed to more risk of being challenged by CRA.
Make sure you schedule a consultation with my team or someone who's experience with real estate investing tax to get a better understanding before you go ahead.