Raymond, an investment account solely in your name can be transferred to your wife on a tax-deferred basis upon your death. Generally, unrealized capital gains would not be triggered by the death of a spouse, and the assets would transfer to the surviving spouse at their adjusted cost base. The tax-deferred transfer could happen if you hold the account jointly or if your spouse is a beneficiary of your will.
During your lifetime, you should consider the income attribution rule when transferring funds between spouses, including adding them as a joint account holder. The attribution rule prevents a high-income spouse from gifting cash or other assets to a low-income spouse for the purpose of paying less tax on the future income.Article content
Even though the attribution rule limits a potential tax advantage from splitting income, that does not mean you cannot make an account joint for estate planning purposes. You may add your spouse to your non-registered account, which would provide them with a legal ownership interest in the assets, but not beneficial ownership for tax purposes. You could continue to report 100 per cent of the income on your tax return even though the account is turned into a joint one.