Generational wealth is a real thing. It is often footed by the passage of property from one generation to another, in effect helping financially a member of a family acquire a home.
When gifting property to an adult family member, the property is no longer available to the giver, even if the giver has a future financial need. In addition, the giver is no longer in control of the property or can make decisions on it.
Since a gift to a family member (other than a spouse of a common law partner) will be deemed to occur at fair market value for tax purposes, gifting real estate can often result in capital gains based on the appreciation of the property’s value between the time it was acquired by the giver, to the time it was gifted to the recipient. These nuances need to be thoroughly understood when making any property decisions.
It is always a sound idea to ensure any tax and legal implications are well understood during the gifting process, and the most appropriate structure of the gift is applied. This will ensure that planning, legal. and tax issues are addressed in any decision making.