George Brown has 2,000 shares in a Canadian Controlled Private Corporation that are worth $200,000 and pays dividends of $10,000 each year. His adjusted cost base on these shares is $140,000. He is already in the top tax bracket. George is planning the following option, but he would like your advice, as his personal tax planner, before he makes a decision.

Option to consider:

• Give the shares to wife who elect out of a 73(1) rollover

Please provide George Brown with your advice for the above scenario.