In retirement, a common question arises: should you sell your home or pass it on to your children? This major decision can have significant impacts on your finances, family relationships, and peace of mind. To make the best choice, it’s essential to reflect on your life goals, understand the tax and estate implications, and seek professional guidance. The Picotte Lefebvre Group – Wealth Managers at Desjardins offers a comprehensive, human, and structured approach to support you throughout this important process.
Define a Strategy Before Selling or Transferring Your Home
Selling or transferring a property shouldn’t be done on impulse. There are important financial and family considerations at play. That’s why it’s best to gather information and work with professionals who can guide you through the process.
Understand the Tax Implications
If you are planning to sell your home or gift it to a child and it’s your principal residence, there will be no tax consequences. However, if the property is not your principal residence, it will be considered a deemed disposition at fair market value, which could trigger capital gains tax.
For couples who own multiple properties, such as a home and a cottage, a consultation with a wealth manager can help identify the best strategy to reduce tax impacts and protect your assets.
Preserve Family Harmony
When it comes to selling or gifting a home, there are often important family dynamics to consider. Does one of your children want to keep the family home? Are they the only ones expressing this interest? If so, how do you ensure fairness for the others? These questions may be sensitive but are crucial for avoiding future conflict.
Having an open conversation with your children about your intentions and their wishes can help you make an informed decision. Good communication fosters trust and helps maintain family harmony. In some cases, setting up a trust or other legal mechanisms, guided by your wealth manager, can help structure the property transfer in a fair and efficient way.
Evaluate Your Current and Future Needs
Before deciding, take a moment to assess your situation. Does your current home still meet your needs? Is maintenance becoming too demanding? Do you need extra funds to:
- finance personal projects such as travel;
- reduce your expenses;
- adapt your living environment?
It’s also a good time to reflect on your lifestyle. Do you want to stay in your current neighborhood or move closer to your children? Are you considering moving into a senior living residence? A wealth manager can help you evaluate all these factors and determine whether selling it is the right decision at this stage of your life.
Reach out to the Picotte Lefebvre Group – Wealth Managers
Manage Your Money After Selling Your Home
Selling your home often results in a significant cash influx. But how do you make the most of it? The key is to meet your needs today while also preparing for tomorrow.
Identify Your Essential Needs
After the sale, your top priority will be covering your basic needs such as housing, food, health care, and leisure. A well-adjusted budget suited to your new lifestyle is crucial. With expert support, you can:
- Re-evaluate your monthly spending
- Adjust your insurance coverage
- Plan for potential future expenses, such as a loss of autonomy
The goal is to maintain your peace of mind without compromising your quality of life.
Plan for the Future with Confidence Through Expert Support
Once you’ve sold your house, thoughtful planning is essential to ensure your financial security and long-term well-being. Effective wealth management allows you to meet your present needs while planning for the future. The Picotte Lefebvre Group – Wealth Managers at Desjardins will work with you to design a personalized plan, whether your goal is to generate steady income, preserve your capital, or grow your savings.
With their human and holistic approach, they help you optimize your tax strategy, anticipate unexpected events, and adjust your portfolio to align with your evolving lifestyle and goals. You'll receive expert, reassuring guidance that gives you peace of mind and the confidence to stay in control, all while benefiting from trusted support.
Plan for Your Family’s Future
Wealth transfer isn't just about managing finances; it's also about preserving family values and ensuring your loved ones are supported in the long term. Thinking about your family’s future involves anticipating their evolving needs while respecting both your wishes and theirs.
This may involve discussions around fair asset distribution, as well as how to support family members who may need financial or other assistance. Taking the time to communicate with your loved ones clarifies your intentions and helps prevent misunderstandings and conflicts.
Organize Your Estate
Planning for the future also means organizing your estate. An up-to-date will is a fundamental tool to clearly communicate your wishes. It ensures that your assets are distributed according to your preferences and helps avoid disputes.
Your wealth manager can conduct a thorough estate analysis and refer you to professionals such as a notary, to ensure all documents are in order. The Picotte Lefebvre Group – Wealth Managers at Desjardins also offers specialized estate planning services to make this important step easier.
Contribute to the Future of Children and Grandchildren
Many seniors wish to provide financial support to their children or grandchildren, through an inheritance, a living gift, or by contributing to a Registered Education Savings Plan (RESP). These gestures can be planned as part of an overall wealth management strategy.
You may also consider creating an endowment fund to support a cause that’s dear to your heart. Your wealth manager will help you structure this approach in a tax-efficient way that aligns with your values and goals.
Looking for a Senior Living Residence?
If you are thinking about moving into a senior living residence, it’s reassuring to know that expert help is available. The senior housing specialists at Bonjour Résidences offer free support to guide you through your search based on your needs, budget, and preferences. Contact them at 1 844 918-1020 or fill out an online request.