Family law firm sees increase in disputes when parents gift or loan funds to adult children amid hot housing market
Have the serious money talk before you move in: Experts
Moving in together can be a big step in any relationship, but experts say it’s crucial to discuss how both parties’ finances will be handled before jumping into cohabitation. Debt payments, credit scores, shared expenses and what will happen should a breakup occur are all key in protecting both you and your partner. One way you can do this is by signing a cohabitation agreement that lays out a detailed plan over how your money will be combined, kept separate or a hybrid approach.
Naming a corporate will executor can help lessen family burden
You might be inclined to name someone you deeply trust – like a close family member or friend – to execute your will after you pass away, but it could also heap added stress onto a grieving loved one. That’s why RBC Royal Trust CEO Leanne Kaufman says naming a corporate will executor could not only lessen the burden on loved ones, but it will appoint someone with expertise in this area. Will executors can be responsible for everything from paying off your remaining debts and selling real estate to mundane tasks like cleaning out your fridge and cancelling subscriptions.
Pot roasts becoming a dinner only for the rich?
If you do the grocery shopping in your family, you’ve likely noticed the price of beef surging. In fact, Statistics Canada says prime rib roast prices have risen 20 per cent over the past year while sirloin and round steaks were up by 10 per cent. Bloomberg News notes one shopper at a major grocery chain in Regina that found a rib roast selling for $124. Labour shortages and shipping costs are part of the reasons why beef prices are soaring.
Are your finances ready for the inflation tsunami?
There are a few things that are out of your control when it comes to your finances – one of them being inflation. Personal Finance Columnist Dale Jackson warns prolonged and high inflation is threatening to undermine Canadians’ household budgets. He says two ways to protect your finances from runaway inflation are to pay down your debt while interest rates remain at rock-bottom levels and ensure your investments are adequately diversified.
More gifted down payments=more family disputes
One Toronto-based law firm said it’s seeing an increase in disputes between family members over down payments that have been gifted or loaned. As home prices surge and more parents provide financial support to their children to buy a home, Shulman & Partners LLP advises that all agreements regarding financial support should be formalized and in writing. The firm said the agreement should include factors such as whether the money will need to be repaid at some point in the future and whether the child’s partner is entitled to any portion of the gift.
- The number of total consumer and business insolvencies in Canada in the third quarter, according to the Office of the Superintendent of Bankruptcy. The number ticked higher compared to the same quarter last year.