Estate tax on sale of home following death

[FraserB]

Hoping someone can provide some clarity on this.

My parents are thinking of gifting me some down-payment money and have no expectation of repayment. However, as part of my will, I'll be stipulating the sale of the home and that the disbursement of whatever equity takes place. Part of this disbursement would be the repayment of this gifted amount.

My main question is whether or not the sale of a home is subject to any estate taxes and whether or not the repayment as part of a will is fine when it comes to the rules surrounding a mortgage?

Thanks

[atgilchrist]

Only estate tax would be probate, which is 1.4% in BC, and I thin AB is less. Mortgage doesn't factor in, as long it is paid off with sale proceeds before the remaining equity is passed to beneficiaries.

[dezmarez]

Originally posted by FraserB
Hoping someone can provide some clarity on this.

My parents are thinking of gifting me some down-payment money and have no expectation of repayment. However, as part of my will, I'll be stipulating the sale of the home and that the disbursement of whatever equity takes place. Part of this disbursement would be the repayment of this gifted amount.

My main question is whether or not the sale of a home is subject to any estate taxes and whether or not the repayment as part of a will is fine when it comes to the rules surrounding a mortgage?

Thanks

Alberta doesn't really have an "estate tax" like other provinces.
There is a probate fee for any net value held within an estate, and is capped at $400. Other provinces take a percentage of the overall estate.
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I'm assuming this would be your principal residence, this would mean your estate wouldn't have to pay any taxes on any increases in the value of the property.

Repayment of the mortgage or anything else registered against title is done before your estate was able to distribute the funds.