Dr. Garth

Pete was hanging with his dad as the orange guy staged Liberation Day. When the American president hoisted that infamou, mythical chart of global tariffs, father lunged for the sell button.

“He wanted to dump everything due to Trump Derangement Syndrome,” says Pete. “Fortunately, I convinced him not to, because the realized capital gains would have made him lose his free dental coverage. Unfortunately he did sell his TFSA – but there was no income to report that would affect his benefits. We managed to buy things back days later, and that cost a few thousand dollars.”

Dental coverage? Sup, Peter?

Well, dad’s 94. And things are starting to bend.

“His finances are pretty good. He has enough to live on from defined benefit pensions, and he also has ETFs worth $1.4 million,” the son tells me. “However, he seems to think he has just $1,400 in ETFs—and according to him, that’s a lot. I corrected him, but it made me wonder: at what point should adult children take control of their parents’ finances? I already help him log in to his trading account remotely, and he can’t make trades without my assistance. Still, I’m starting to think I may need to seek legal authority over his finances.”

Looks like that horse has left the barn. The old guy’s turning into his own financial enemy. How many yellow flags do you need, Pete? He doesn’t grasp his own net worth. He’s emotional and irrational. And you’re facilitating him by assisting with a DIY online trading account. Left to his own devices (and due to the wilful negligence of the financial platform and its regulator) he could wipe out his financial security with a few bum key strokes.

So the duty of a responsible adult child is to take control – protecting the parent the way they protected you.

Did Pete’s dad sign a Power of Attorney years earlier? Hopefully so. In that case, it’s time to gently invoke that authority – and a good place to start is with the trading platform, then the bank. The old guy may stomp and resist, but circumstances dictate it happen. The emotional burden of dealing with a parent who fights back is far heavier than the task of amending financial agreements. Just do it. Time will heal the rift.

And if there’s no POA in place, but dad needs to retire his twitchy ‘sell’ digit?

Now we have more trouble (which is why you always, always, always get an older parent to grant this power when a will is written – it’s too late if mental decline sets in). Pete may be forced to seek intervention by the courts in order to become his father’s legal guardian or, if he shirks that duty, to have the state intervene.

The steps involved: Pete applies through his lawyer to have the court appoint him as legal representative and guardian, capable of making financial and health care decisions. That court order, when granted, is then used to revise all of the parent’s holdings and banking/investment relationships. When family members are unwilling or unable to do this, the court may designate a public guardian or trustee as Substitute Decision Maker – not the preferred option.

The moral: everybody gets old. We all die. After the age of eighty the odds of dementia rise sixfold. Sign the damn POA early, designating a spouse, child or third party. Have a will in place, preferably with an institutional executor who knows what to do, dispassionately and efficiently. Don’t leave your family to wade through an emotional swamp when you start going overboard.

That’s hubris. Intransigence. Vanity.

Now, Let’s talk about the kiddos. Also expensive.

“I have a self-directed family resp with TD direct investing,” writes Scott. “Three kids. Collected 95% of government grants before maxing the full $150,000 ($50,000 per kid). I know I can take out MY contributions tax-free when kid #1 starts post-secondary.  Am I limited to $50,000 withdrawal as each kid starts school or can I take out the entire $150,000 at once? Any help would be appreciated!”

Simple answer. You can take it all. You made the $150,000 contribution – which has presumably grown tax-free, augmented by the freebie government cash – and that money belongs to you. Steal it from your spawn whenever you feel like it.

Here’s how the CRA puts it: “A withdrawal of contributions can be requested by the RESP subscriber. The contributions can be taken out of the RESP tax-free and returned to the subscriber. The subscriber may choose to give these funds to the beneficiary.”

But be careful just to nab back your own funds. Contributions are untaxed. Growth and government grants are taxable in your hands (plus a 20% penalty). But you can transfer fifty grand of growth to your RRSP, or that of your spouse.

Surprise, kids!

About the picture: “Hi Garth – as a regular to the blog I have seen many cute pooches and some interesting felines,” writes Doug in Victoria. “That being said, may I present Toast, my son and partner’s 31-pound tuxedo cat. He has become somewhat famous in their neighborhood….much to his chagrin .

To be in touch of send a picture of your beast, email to ‘[email protected]’.

Source: https://www.greaterfool.ca/2025/06/08/dr-garth-57/