Weekly Tax Tip - Invest inheritances for the benefit of your children

August 2017

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If your child inherits money, make sure that you segregate these funds and invest them in the name of the child. If you or your spouse will inherit funds from a relative, you can split income from that inheritance as well if your relative names your child as a beneficiary. Keep in mind that if a child’s inheritance from a relative who is not their parent includes shares of a private company, the dividends will likely be subject to the kiddie tax.

This tax tip is a publication of BDO Canada LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of August 7, 2017.