Death and Taxes
Benjamin Franklin said there was nothing certain in this world but death and taxes.
That in mind, it has always surprised me how few seniors are aware of their ability to defer property taxes in B.C. Since its inception in 1974, only a relative handful of homeowners have taken advantage of the Tax Deferment Program which allows seniors to set property taxes aside until death or selling the property.
The details are roughly as follows: it has to be your principal residence (vs. a rental or vacation property), you have to have 25% equity in it, be a B.C. resident, and prepared to pay a one-time application fee of $60. The debt is registered as a charge on title at the Land Titles Office and you settle it from the proceeds of sale if and when you sell — or your heirs attend to it after you’re gone.
The province pays the municipality for the deferred amount so nobody goes without, and with property values increasing by leaps and bounds there seems no good reason not to do it. Let the bouyant market carry the burden the rest of the way.
It has estate planning implications, so you might want to involve your heirs and financial planner in the decision.
Perhaps Ben Franklin was only partially right.
1 comment July 19th, 2007
