# I have 3 boy`s



## 1980z28 (Mar 4, 2010)

I am to retire soon,have 3 boy`s I have raised,as of divorce 

34,31,20 years old

Thinking of giving each one 60k in stock each

Which I will do

What is the best way to do this,it would be a gift


Thinking I could MAX there TSFA and open a SDTFSA and the rest in there cash account until next year contribution,if anyone knows me my kids first

They have there own RRSP accounts

Is this ok or is there a better way????

I do not need the cash as I have saved enough until I expire 


Any thoughts on the gift would be great full


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## CPA Candidate (Dec 15, 2013)

You'll want to consider the tax implications. Gifting the shares will be a deemed disposition at fair value and may cause taxable capital gains.

Logistically, it may be easier to sell the shares from where they are held and transfer cash to your kids. Then rebuy the securities once deposited in their account. Transferring shares held in an account "in kind" could be more work.


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## 1980z28 (Mar 4, 2010)

Sorry for the bad INFO

I will deposit 60 K in each SDTFSA account( 46K) the rest is a cash account they will ad until the 60k is gone as I see fit


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## mrPPincer (Nov 21, 2011)

You no doubt know this, but the 20 year old will ofc have less TFSA room so he'd have to have more in cash acct. right?


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## 1980z28 (Mar 4, 2010)

mrPPincer said:


> You no doubt know this, but the 20 year old will ofc have less TFSA room so he'd have to have more in cash acct. right?



I live for the day my kids do not need mee

Kidding


He will have a cash account

May buy some POT


Kidding

I will give the kids the cash,they will buy as I say,cash is cash and O & G is what it is other option is Banks or my use to be top holding is FTS or CSH.un as I will end up there


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## jargey3000 (Jan 25, 2011)

"boy's" Sorry, I'm just curious - it's a pet peeve of mine . Why do people do this?


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## mrPPincer (Nov 21, 2011)

jargey3000 said:


> "boy's" Sorry, I'm just curious - it's a pet peeve of mine . Why do people do this?


All their's spellings' are their ways they're there in the world of new word grammar
http://www.howtospell.co.uk/there-their-they're


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## OhGreatGuru (May 24, 2009)

As others have suggested, cash is the best way because of the tax implications of disposition.

Trying to give your adult children securities; or decide which of their accounts you will put it in; is trying to control their lives. They may have other financial priorities; and in any case it is fruitless because you can't prevent them from withdrawing or redirecting the money afterwards.

You may want to reconsider giving a 20-yr. old a $60K lump sum. The older two hopefully have more than a decade of maturity over the youngest.


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## OhGreatGuru (May 24, 2009)

jargey3000 said:


> "boy's" Sorry, I'm just curious - it's a pet peeve of mine . Why do people do this?


And here I thought I was the only pedant on the Forum.

_"It's the goldurn edykashun system. They doesn't larn them kids proper inglish anymores!"_


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## sags (May 15, 2010)

Just a thought I was given by a wise person years ago............once a gift is given it isn't yours anymore.

I might be inclined to give them $20 K cash each and observe what they do with it, without direction from me unless they ask.

If they don't ask for direction..............they don't want it.

In a year, you can see what happened to the cash and decide from there.

But, remember the parable of the Prodigal Son.............and what is important in family and life.

For those who used the $20 K wisely, they can decide for themselves about the other $40 K. For those who spent it unwisely.........maybe they need direction with their remaining $40 K.

_According to the story, a father has two sons. The younger son asks for his inheritance before the father dies, and the father agrees. The younger son, after wasting his fortune (the word "prodigal" means "wastefully extravagant"), goes hungry during a famine, and becomes so destitute he longs to eat the same food given to hogs, unclean animals in Jewish culture. He then returns home with the intention of repenting and begging his father to be made one of his hired servants, expecting his relationship with his father is likely severed. Regardless, the father finds him on the road and immediately welcomes him back as his son and holds a feast to celebrate his return, which includes killing a fattened calf usually reserved for special occasions. 

The older son refuses to participate, stating that in all the time he has worked for the father, he never disobeyed him; yet, he did not even receive a goat to celebrate with his friends. The father reminds the older son that the son has always been with him and everything the father has belongs to the older son (his inheritance). But, they should still celebrate the return of the younger son because he was lost and is now found. _

The moral of the story is that the father received as much joy at the return of his prodigal son, as he did from the financial success of his other son.


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## humble_pie (Jun 7, 2009)

1980z28 said:


> I live for the day my kids do not need mee ...
> I will give the kids the cash, they will buy as I say





1980z28 said:


> I will deposit 60 K in each SDTFSA account( 46K) the rest is a cash account they will ad until the 60k is gone as I see fit



hmmn this is a side of you we've not seen before. I mean, these are grown men aged 34, 31 & 20, no? as you see fit? as you say to them?

sometimes it's a wee bit difficult for even the most loving of parents to let their adult children go


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## 1980z28 (Mar 4, 2010)

Sold a house,will get 309k on the 16th march

I told my children I would give them cash to invest in equal amounts of 60k each from the house sale


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## humble_pie (Jun 7, 2009)

1980z28 said:


> Sold a house,will get 309k on the 16th march
> 
> I told my children I would give them cash to invest in equal amounts of 60k each from the house sale



hmmmmn, better.

but the amount of cash might still be a bit grandiose?

the fact that you started out by saying that you'd direct their investments in TFSA & non-registered, you'd invest *their* gifts as you saw fit, etc - those remarks suggest that your lads don't have very much investing experience yet.

unless your boys have grown up on lavish multimillionnaire standards, $60k each is a lot to be dropping into the hands of young investment novices who might decide to buy fast cars rather than long-term securities.

just upthread, sags says he likes $20k each son for starters. That's the amount i'd go for myself.

if one lad among your 3 sons is doing something unusual which would require startup investment - such as buying a house or launching a business or going to college - you could tailor a special gift to fit those circumstances.


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## 1980z28 (Mar 4, 2010)

I would like for the money to be invested

To start I would like to open a SDTFSA for each

I guess I could hold the cash in trust and give it up each year for their tfsa until the 60k is gone


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## humble_pie (Jun 7, 2009)

1980z28 said:


> I would like for the money to be invested
> 
> To start I would like to open a SDTFSA for each
> 
> I guess I could hold the cash in trust and give it up each year for their tfsa until the 60k is gone



oh i like this each:

it would likely mean you will be taxed yourself on most of the funds at the outset, diminishing each year as you & the lads work the capital down & make those TFSA contributions.

i imagine initially you thought of the 3 brand-new TFSAs as an extra way to shelter something like $150k from the house sale profits from taxation?

the problem is the multi-dimensional psycho/social/financial effect that the gesture might have on the offspring, if it were overdone. It's such a hard thing to juggle (sometimes it sucks to be successful in life.)


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## 1980z28 (Mar 4, 2010)

humble_pie said:


> oh i like this each:
> 
> it would likely mean you will be taxed yourself on most of the funds at the outset, diminishing each year as you & the lads work the capital down & make those TFSA contributions.
> 
> ...



I guess I have 6 more weeks to figure it out



Thankyou for all that posted


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## humble_pie (Jun 7, 2009)

if i'm somewhat near the ballpark, ie you are into tax avoidance (legal) plus helping the offspring (laudable), then sag's suggestions upthread have additional merit.

sags says observe how the lads do during the first year, each with $20k invested. To that one might add observe during the first 2 years, not just one year.

by the end of year 2, you will have contributed roughly $32k to each son (20k original donation plus estimated 6k annual TFSA contribution X 2 years). You'll also have a decent working knowledge of how responsible each lad is going to be.

if all goes well, hand over the balance of the planned $60k during year 3.

this would leave you personally highly taxed during years 1 & 2. You could alleviate this, if you like, with high charitable donations during those 2 years. If you happen to have any stock that has appreciated enormously on paper, ie you'd have a high capital gain if you were to sell, then consider donating some of that stock *in kind* to a registered charity. This does wonders for the cost base, painlessly raising ACB so that future dispositions are not, from a tax point of view, as profitable.


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## 1980z28 (Mar 4, 2010)

humble_pie said:


> $60k during year 3.



I am thinking that the 20k for each year would work

I have worked very hard over the years to be in a position to have some extra cash

At 18 I was homeless,,,so hard work does have it`s rewards

Thanks again


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## lonewolf (Jun 12, 2012)

1980 not sure if I like the idea of just handing over money ? Another option would be to spend the money on each boy that produces a life experience you can enjoy with each son. A prerequisite before I handed over a lump some of money to anyone would be for them to track @ least 6 months of income & spending so they could get a better understanding if they are making the most use of their money. I like your idea of using money as seed to grow & prosper


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## Chris L (Nov 16, 2011)

I can respect what you are doing. I agree with the $20k. While you are alive, you ARE free to request that they use it for a specific purpose - to invest. However, once you give it to them, you relinquish that right. Seeing as how you have 2 choices, you can give it to them, or spend it freely yourself and make your personal life more enjoyable (buying a fast car and some crack and hookers - joking, but still), means that you should be able to put caveats on the money. They can agree to this, or not, but it may dictate how much future money you might give to them. Ultimately, they know what's best for them, and will spend it in a way that maximizes their happiness...and if you keep it, so will you. Keeping it and spending it on you saves the grief of them spending the cash on hookers and fast cars for themselves - and pissing you off. So there's a lot going on. But as mentioned, and consensus, give only what you feel can be sacrificed for their own personal happiness and kiss it goodbye. If how they spend money makes you happy, then give them some more. It's YOUR money to do as you please!

I'm a saver. My mother-in-law is not. She INSISTS on giving a grown *** man (me) money for every event. She tells me to spend it - she's got hardly enough money and still works into her grave. I told her to stop, but she wont. It makes her happy to give it away and try to make me spend it. I have everything I want, but she insists....Long story...I just stuff that money into my son's savings account. I feel bad taking it, she feels bad not giving it, my son wins because he doesn't even know he's getting it! And so everyone is happy - except I always feel like **** accepting it. haha


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## 1980z28 (Mar 4, 2010)

Chris L said:


> I can respect what you are doing. I agree with the $20k. While you are alive, you ARE free to request that they use it for a specific purpose - to invest. However, once you give it to them, you relinquish that right. Seeing as how you have 2 choices, you can give it to them, or spend it freely yourself and make your personal life more enjoyable (buying a fast car and some crack and hookers - joking, but still), means that you should be able to put caveats on the money. They can agree to this, or not, but it may dictate how much future money you might give to them. Ultimately, they know what's best for them, and will spend it in a way that maximizes their happiness...and if you keep it, so will you. Keeping it and spending it on you saves the grief of them spending the cash on hookers and fast cars for themselves - and pissing you off. So there's a lot going on. But as mentioned, and consensus, give only what you feel can be sacrificed for their own personal happiness and kiss it goodbye. If how they spend money makes you happy, then give them some more. It's YOUR money to do as you please!
> 
> I'm a saver. My mother-in-law is not. She INSISTS on giving a grown *** man (me) money for every event. She tells me to spend it - she's got hardly enough money and still works into her grave. I told her to stop, but she wont. It makes her happy to give it away and try to make me spend it. I have everything I want, but she insists....Long story...I just stuff that money into my son's savings account. I feel bad taking it, she feels bad not giving it, my son wins because he doesn't even know he's getting it! And so everyone is happy - except I always feel like **** accepting it. haha





I will give 20k each at Christmas to invest and the next 2 years that follow,so 20k X 3


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## lonewolf (Jun 12, 2012)

1980 nice car where you from ? Car would look good with glass coating which I can do.


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## 1980z28 (Mar 4, 2010)

lonewolf said:


> 1980 nice car where you from ? Car would look good with glass coating which I can do.


Thanks

I purchased car in 1982

Put 15k into drivetrain,0 to 100 in 4.2 sec


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