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Discussion Starter #1
Hi all,

One of our children is turning 21 and we have had an ITF (informal trust account) that has grown over the years.

We would like to give her the money.

3 Questions: What are the tax consequences?? Will the money be taxed in our tax bracket or in hers?? Any tips??

Thanks-a-ton,
audiobill
 

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Agree. The principal always did belong to her so there is no change in ownership. Its income would now be taxed in her hands according to how she wants to invest it.
 

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Discussion Starter #4
Thanks Billiam and Leslie.

I just need to find out how to dissolve the ITF (forms, and so forth if any) and then give the moneys to our 21 year old with some fatherly advice about how best to invest it in a TFSA of their own.

Thanks-a-ton for your help,
audiobill
 
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