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By Jason Heath, CFP on October 29, 2025
Estimated reading time: 5 minutes

By Jason Heath, CFP on October 29, 2025
Estimated reading time: 5 minutes

A MoneySense reader is worried about a real estate transfer that her mother made to her that could become a problem for her.

My parents owned a cottage (the only property they ever owned, they couldn’t afford a house), and it was transferred to my mother after my father died. She “sold” me her cottage for $1 on March 19, 2009. I recently read an article about how that is NOT “legal” and have had sleepless nights since. The notary who completed the deed of transfer did not inform either my mother or me of any tax implications, so no taxes were paid.

My mother died on January 3, 2011. The estate was complicated because she had money in Switzerland she did not tell anyone about, and my brother and I (executors and heirs) had to pay penalties, back taxes as a result—not to mention hefty legal and accounting fees. So, not much “inheritance” left.

I am really concerned that I will be hit at some point with a huge tax bomb and penalties that will wipe out my savings. (I’m 69 years old.)

–Susan

I am sorry to hear about the stress that you are experiencing, Susan. This situation is a reminder for people about how important it is to stay organized and compliant from a tax and estate perspective; otherwise, you risk causing issues for your executors and beneficiaries in the future.

If you discover a mistake, or you want to come forward with an omission, there is a path to do so with the Canada Revenue Agency (CRA). It is called the Voluntary Disclosure Program (VDP). According to CRA:

“The Voluntary Disclosures Program (VDP)........

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