<p><strong>Q:</strong> I’d like to give my children about $100,000 as a cash gift to get it out of my estate and away from the tax man. Is it possible?</p>
<p><em>—B &amp; R, Kelowna, B.C.</em></p>
<p><strong>A:</strong> Cash is king when it comes to passing a gift to your kids. “There will be no tax payable on the gift by either the donor or donee as Canada doesn’t have gift or estate tax,” says Grace Chow, a tax specialist at Cadesky and Associates in Toronto. However, if the gift is in the form of an asset, like a cottage, the asset will be deemed to be disposed at fair market value and you will owe tax on 50% of the appreciable gains. I wouldn’t call it a tax grab, but I think you might.</p>
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