Inheritance

[-TSS-]

I think in  all western countries inheritance works in a way that if there is no will or testament made the property of the deceased is equally shared between the descendants but there are variations between countries how much power a will has. 

In Finland you must leave at least half to your children and you can order in your will the other half to be given where you want. 

In the UK there is no such obligation to leave a half to your children. You can make a will and leave your children without anything at all.

I think that must be the case in most other countries too. The Finnish system is a remnant of the agricultural past whereby the eldest son inherited the house and the farm therefore the other children would have become destitude if there was no legal requirement to leave anything to them.

I think there are also variations between countries as to the right of a widow to stay living in the couple's house as long as she lives.

I would like to hear how are things concerning inheritance-matters in Canada.

nly

 

[herbie]

Give everything away on your deathbed and let the CRA figure out the rest themselves. Then if you owe them taxes, you're dead and they're f*cked.

[Aristides]

The CRA will get it's cut of any investments you give away when they are sold. If you have anything left in your  RIFF it will be taxed as income. If your estate is more than 25K it will be subject to probate.

[herbie]

They get the standard witholding tax when it's cashed, any remainder when tax is due. If your cash and assets are gone and you are too, it's their problem.
So give them away before Dec 31 and die before Apr 30 to maximize the f*ckery.

[Aristides]

On 6/7/2025 at 1:46 PM, herbie said:

They get the standard witholding tax when it's cashed, any remainder when tax is due. If your cash and assets are gone and you are too, it's their problem.
So give them away before Dec 31 and die before Apr 30 to maximize the f*ckery.

They will be taxed when they are cashed in, regardless of who does it. CRA will get its share regardless. 

[herbie]

That's what I said. The withholding tax when it's cashed. But if your other income is enough that might nor cover the actual tax.

I had to cash in my entire RRSP in the 1990s. Added to my other income it left me $40,000 short and took a decade to pay off. If I'd croaked the next year they'd have only got the witholding...

[August1991]

On 6/6/2025 at 5:57 PM, -TSS- said:

...

I would like to hear how are things concerning inheritance-matters in Canada.

 

 

Finland? I suspect that you follow civil code.

UK? I suspect it's the common law. 

In such matters, Canada has both common law and civil code - depending on province.

Edited June 27, 2025 by August1991

[Nationalist]

Now that I'm retiring, we've been thinking of making wills. I now have to decide, do I just sell it all? Part of it? None and write the spawn in as co-owner?

Hell is it even worth it to hang on to property right now?

Meh...one thing is for sure...we have to do it before we start traveling. 

[herbie]

Why?

Doing a will is a good thing as it speeds things up somewhat.
If your spouse it on the title of a principle residence, it just goes to her. If she's not, put her on it. If you put multiple kids on the title, it gets complicated. 
Talk to an estate lawyer.

[TreeBeard]

On 6/6/2025 at 2:57 PM, -TSS- said:

In Finland you must leave at least half to your children

Are there exceptions?  What if your child is a terrible person?

[LinkSoul60]

On 8/4/2025 at 9:01 AM, Nationalist said:

Now that I'm retiring, we've been thinking of making wills

Don't think about it.... do it.  Anyone and everyone with sizeable or otherwise assets and/or children should have a will.  Don't know your situation nor is it my business but guessing you'd rather have your wife or other family member being the executor of your assets rather than the courts.  

[Nationalist]

2 hours ago, LinkSoul60 said:

Don't think about it.... do it.  Anyone and everyone with sizeable or otherwise assets and/or children should have a will.  Don't know your situation nor is it my business but guessing you'd rather have your wife or other family member being the executor of your assets rather than the courts.  

Yup. I been-a-thinkin' the same.

[-TSS-]

On 8/6/2025 at 8:10 PM, TreeBeard said:

Are there exceptions?  What if your child is a terrible person?

Yes in extreme cases such as if your child ties to murder you in order to get the inheritance sooner but other than that it is almost impossible.

I knew a person whose father was trying to cut her out of the will because she was member of some religious cult and gave a lot of her money to that cult and the father didn't want to leave money just that it is  given to some religious lunatics but it didn't help. 

That was years ago. I don't know did she give all the inheritance money to the cult or not.

[herbie]

That is the importance of a will. A person can contest it, whine and carry on all they want but the terms of a will are almost always foremost.

[August1991]

On 8/9/2025 at 8:41 PM, Nationalist said:

Yup. I been-a-thinkin' the same.

I agree. Old people tend to think they'll live forever.

 

 

[herbie]

So how to you go to more funerals than weddings and christenings and think you're gonna live forever?
When my next door neighbour passed away, the lady across the street told me that I was now the old fart on the block.... I just spent yesterday on my knees with my head in the dishwasher fixing screens etc. and today I'm so sore I paid a kid $20 to mow just my small back lawn.

My dog likes to remind me of my own mortality each night when I walk him - by stopping dead in front of me and wrapping me up in his leash whenever he sees a cat!

[August1991]

6 hours ago, herbie said:

...

My dog likes to remind me of my own mortality each night when I walk him - by stopping dead in front of me and wrapping me up in his leash whenever he sees a cat!

Herbie,

You receive CPP, OAP - maybe even GAINS. Or, you have some LIFF payments. 

You are a Canadian boomer - without kids. And you have a good, honest Jamaican woman working at minimum wage to care for you.

Such is modern Canada in the 2020s.

Is this sustainable?

[herbie]

Not me. Got a small amount from union pension, no GAIN. Enough to get back all but a couple hundred of the tax I get withheld.
Kinda use tax as a forced savings as I always worried I'd just waste it on junk, Like more computers...
The wife's best friend comes and cleans for a couple hours every 2 weeks. Dave her my other satellite decoder and a dish, pay only every 2nd time. Gave her a laptop I refurbed and my iPhone10 to keep up with reality cuz she lives out in the boonies.

But ya described a lot of guys I know. Their Filipino/Peruvian spouses are just waiting for them to bite the biscuit.

Daughter just told me I was leaving her my house, so go blow your money on an EV if you want one. Perfect kid.
 

 

[herbie]

You know, one bit of advice is to max out TFSAs to your limit.
They transfer tax free to your spouse or beneficiary.

Some advisors even suggest when you're over 65 pulling as much as you can from your RRIF so it minimally affects taxes and OAS clawbacks and moving it to TFSA. Once there you can access it without penalty if you need it.

 

[August1991]

On 8/30/2025 at 10:22 PM, herbie said:

You know, one bit of advice is to max out TFSAs to your limit.
They transfer tax free to your spouse or beneficiary.

.....

 

Advice? Have kids.

Herbie, do you have kids - uh, a beneficiary?

[August1991]

In Canada, you also need someone (family, good friend) who works in the provincial health system.

1. The rules are complicated. You need someone to explain them so you know what to do.

2. Within the system, you need someone to argue on your behalf.  

 

[herbie]

Have one daughter by blood, my son passed away. Have 3 stepchilren, only one I raised as a kid for only a couple years till he went to his Dad and the ex let him.
So it's easy.

There's a case in BC where a couple lived together for 4 years. Her will she left everything to some Christian charities and nothing to him. so he's fighting to claim half.

Pretty sure that's why the CGA I lived with once booted me after 11 months. Cold hearted money grubbing biatch. 
 

[August1991]

22 minutes ago, August1991 said:

Advice? Have kids.

Herbie, do you have kids - uh, a beneficiary?

Note: Rereading, you have a daughter.

 

[August1991]

Americans, you have the term: Lawyer up.

We Canadians have the term: Do you know somebody? 

[herbie]

Saw an entirely misleading headline last week stating because both parents died in the same year their surviving daughter "owed" the CRA $660,000.

When you die, your taxable assets (including RRSP) are tallied and taxed for that one year. So if you got $30K pension and there was $1M in your RRSP, you get taxed on $1.03M.
The daughter didn't "owe" a nickel. The estates did. The headline implies otherwise.
She didn't GET the $660K owed, which is not the same as losing that amount.