Service Overview
Focused legal support for ila for a transferor
A property owner, called the transferor, may choose to transfer all or part of an ownership interest as a gift or for nominal consideration, such as $1.00. These arrangements can arise when adding a family member to title, changing ownership between spouses, or transferring property to a company or trust.
Independent Legal Advice, or ILA, helps the transferor understand the transaction separately from the person receiving the property. A title insurer or transaction lawyer may require ILA, depending on the circumstances and the interests involved.
Why independent legal advice matters
A transfer may change your ownership, control over the property, and ability to sell or mortgage the interest being transferred. The effect depends on how much you transfer, the form of ownership, and any rights or arrangements you retain. Our advice focuses on the actual documents and the consequences of the proposed transfer.
A gift can also have tax consequences even when no money changes hands. The Canada Revenue Agency generally treats a gift of capital property as a disposition at fair market value, subject to special rules and available relief. We identify potential issues for discussion with your accountant before the transfer. See the CRA’s guidance on transfers of capital property.
How our office can help
Our ILA process may include:
- Document review. Reviewing the proposed transfer, current title search, and related documents such as a gift letter or trust agreement supplied by the transaction lawyer.
- Explanation of the consequences. Discussing the ownership interest being transferred, any rights you retain, the consideration you will receive, and potential issues requiring tax advice.
- A private discussion. Meeting with you in person or virtually, as appropriate, to answer questions and assess whether you understand the transfer and are proceeding voluntarily.
- Certificate and coordination. Where appropriate following the advice and signing process, completing the required ILA certificate and forwarding it to the transaction lawyer with your authorization.
Who may need this service
- Parents gifting property or adding adult children to title as part of a proposed estate planning arrangement.
- Spouses transferring an ownership interest in connection with separation or refinancing.
- Individuals transferring property to a holding company or trust under a proposed tax or ownership plan.
Our office helps transferors understand the rights affected and the documents they are being asked to sign before the transaction proceeds.