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Dear Nancy Woods

I want to help my daughter out by giving her money for her RSP. She is an only child and she will get all of my assets in my estate later on anyways. I think she would be better off to get some of it now. She has room to contribute $30,000. What is the best way to go about this?

Signed Lisa

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Dear Lisa,

It is a wise decision to pass some of your assets on to her now if it will not be a negative to your financial health later on. You can give her the $30,000 in either cash or securities. If you give it to her in the form of security, just be aware that if there is a capital gain then you will need to declare it as a disposition. Also check that the security is a suitable addition to her existing portfolio if she has one.

This maybe the time for both of you to have a financial planner look at your situations. I would also suggest that you consult an estate lawyer to see what actions can be taken now to plan for your estate. Specifically, look at ensuring that the assets are free from division if there is any future marital breakdown. You don’t want the chance that they could be at risk if you gift now versus her receiving later as an inheritance. There can be a difference.

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Nancy Woods is a Vice President, Portfolio Manager and Investment Adviser with RBC Dominion Securities Inc. Visit her blog, “Nancy’s Notes” at nancywoods.com or send her your question to asknancy@rbc.com