* Transfer of Ownership: You must legally transfer ownership to the recipient. This involves completing a used vehicle information package (UVIP) and submitting it to your provincial/territorial registry. The specific forms and processes vary by province and territory. Failing to do this leaves you legally liable for any accidents or infractions involving the vehicle after the transfer.
* Taxes and Fees: Depending on the province/territory, there may be transfer taxes or other fees associated with transferring ownership. These are usually paid by the recipient, but the specifics depend on your jurisdiction and the agreement between you and the recipient.
* Outstanding Loans or Liens: If there are any outstanding loans or liens on the vehicle, these must be settled before ownership can be transferred.
* Insurance: The recipient needs to obtain their own car insurance before driving the vehicle. Driving an uninsured vehicle is illegal.
* Disclosure of Defects: It's crucial to be upfront about any known mechanical issues or defects with the car. Failing to disclose significant problems could open you up to legal liability later on.
* Gift Tax Implications: While generally gifting a car isn't subject to federal gift tax in Canada, there might be implications if the gift is considered unusually large. Consult a tax professional if you're concerned.
* Will: If you're gifting a car as part of your estate planning (e.g., in a will), specific legal processes apply.
In short, while gifting a car is possible, it's not a simple process. It requires completing the proper paperwork and understanding the legal responsibilities involved in your province or territory. It's advisable to check with your provincial/territorial registry for the specific procedures and requirements.
