Unlock the Power of eSignature Legitimateness for Quitclaim Deed in Canada

How to eSign a document: e-signature legitimateness for Quitclaim Deed in Canada

is there a disadvantage to you when you are transferring D to your house there's always advantages so we're going to look at one disadvantage that there may be there when you transfer title or transfer deed of your house by adding somebody on to the title or the deed oftentimes people add their siblings or their kids or somebody close to them to their property by using joint tenancy and right of survivorship to avoid probate and that may be good that maybe not good let's look into that by the way when there is a deed as joint tenants with the right of survivorship which means that let's say there's two people on the title if one of them pass the other person on the title gets the house and vice versa so that's a joint tenants with the right of survivorship by the way I'm not an attorney or a CPA so if you do have a situation where you need to transfer title and you're looking for information I would highly recommend that you talk to an attorney who's knowledgeable about the transfers and title transfers or talk to your accountant or somebody professional to further proceed my video is just to give you basic information on the advantages or disadvantages of a title transfer so the best way is for me to explain to you is through an example let's say a dad has owned the house for a long time and he want to add his kids to the title of the house or to the deed of the house so whenever he passes along the kids will have the house and they will try to avoid probate well that's a good thing and easy way to do but here's a disadvantage that may arise in the future so let's say the dad bought the house 25 30 years ago and let's say he paid a hundred thousand dollars come back 25 years down here today and let's say the house is worth 900 or a million dollars which is very possible in California because the homes appreciate very rapidly here and as you may know the average home appreciation Nationwide is about four percent per year so in 30 years the house appreciates a lot but in that scenario let's say the dad bought the house for a hundred thousand dollars and in today's market it's worth a million dollars now assuming that they had added the kids as joint tenants with the right of survivorship and let's say the debt passes today so obviously the house belongs to the kid or kids or whoever the house was transferred to the disadvantage is let's say the kids don't want to stay in the house they already have a house or the dad was out of state so they don't want to move and they want to sell the house so so now when the kid to sell the house the value of that property was a million dollars and dad bought the house at a hundred thousand dollars way back so the gains tax or the capital gains on this property and in this scenario is nine hundred thousand dollars so if the kids sell the property today they may be liable for up to nine hundred thousand dollars in capital gains tax which is very very high today especially in California now one way to avoid that or one possible way to avoid paying taxes is if the dad had a will or a living trust and and so when he passes away the property will transfer currently to the siblings or the kids or whoever via a living trust or a will in this situation the value of the house would be a million dollars so let's say the dad did have a living trust or a trust or a will and it passes away and the kids decide to sell and they sell it for a million dollars in this case there may not be any taxes because the basis or the Step Up basis of the house is now a million dollars not a hundred thousand dollars because there was a will and a trust versus there was no will or trust when you just need a transfer deed as my previous example so that's the advantage of doing things right doing it through an attorney but that's one way to transfer title or a deed and of course the recommended way is through a living trust or a will talk to your accountant or your attorney by the way thanks for watching my video if you can subscribe I would really appreciate it [Music]