Multiplication of the LCGE

A planning strategy that spreads the gain on a sale of qualifying property across several family members — often through a discretionary family trust — so that multiple individuals can each claim their own Lifetime Capital Gains Exemption. Because the exemption is available per individual, allocating a capital gain among several beneficiaries can shelter a large multiple of what one owner could shelter alone. The structure must be in place well before a sale: the shares must qualify and have been held for at least 24 months, and the beneficiaries must be residents of Canada.