A living inheritance means parents helping their kids, or grandkids, now, while they are alive to see it, instead of leaving everything in the will. A down payment, a grandchild's education, paying off a child's debt, or simply a family trip. For many BC parents the money is in the house, which is where the planning gets interesting.
Giving now vs leaving it in the will
| Give now | Leave it in the will | |
|---|---|---|
| Who benefits | Your kids, when they need it most, and you get to see it | Your kids, usually later in life |
| Control | Once given, the money is theirs | You keep everything until the end |
| Fairness | Needs a plan if siblings are helped unequally | Easier to split equally |
| Probate | Money already given is generally not part of the estate | BC probate fees apply to most estate assets, roughly 1.4% of the value over $50,000 |
| Risk | Giving away money you later need | Help arrives after it would have mattered most |
General information only. Probate, tax and family law questions depend on your situation. Speak with a BC lawyer and an accountant.
Where the money comes from
Savings and investments are the simplest source. When the wealth is in the home, parents may downsize and gift part of the proceeds, borrow with a HELOC if they can handle payments, or use a reverse mortgage if they are 55 or older and want to stay without monthly payments. Each one reduces what is left in the estate, so the family should look at the trade-offs together.
Keep it fair, and write it down
Most family conflict over a living inheritance comes from siblings feeling left out. Equal gifts now, treating a gift as an advance on the inheritance in the will, or a written loan are all common approaches. In BC, a spouse or child can ask a court to vary a will they see as unfair, which is one more reason to plan this with a lawyer and talk about it openly.
Do not give away what you will need
The point of a living inheritance is joy, not regret. Parents should keep enough for their own care, repairs and a comfortable life. A good plan starts with their needs, then looks at what can be given.
Questions people ask
What is a living inheritance?
Giving money or help to your children or grandchildren while you are alive, rather than leaving it all in your will.
Is there a gift tax in Canada?
Canada does not have a gift tax on cash gifts. Gifts of property, and income earned on gifted money, can have tax effects, so talk to an accountant.
Can my siblings challenge a gift?
A gift made during life is generally the recipient's. A will that seems unfair can be challenged in BC by a spouse or child, so plan gifts and the will together with a lawyer.
About the author
Matt Blake is a licensed mortgage broker in British Columbia with BRX Mortgage Inc. He helps families whose parents are house rich and cash poor compare every option, from HELOCs and downsizing to reverse mortgages, with the parents in charge of every decision. He will tell you straight when a reverse mortgage is the wrong move.
Licence MB600487 · BRX Mortgage Inc., brokerage licence X301291 · Last reviewed October 2026
Get everyone on the same page
The free Living Inheritance Guide covers every option side by side, the paperwork, and a family meeting plan. Then book a family call with your parents on the line, if and when you are ready.