Succession planning for the cottage is complex, especially when it’s to be shared by multiple family members who all have an emotional attachment. For many cottage owners, values have increased so significantly that their children may be forced to sell it just to pay capital gains and probate taxes.
Jumping off the dock in the noonday sun, paddling a canoe in the late evening alongside the loons and roasting marshmallows on the bonfire late at night: the beloved cottage is a magical place for many Canadian families. Indeed, in many parts of the country, real estate values of cottages, cabins and other waterfront recreational […]
In last month’s column, I discussed some of the key issues involved in cottage succession planning. This month, I’ll consider four case studies that highlight how different strategies can work in different client situations. Each strategy can help minimize the financial impact of a cottage transfer, while also managing some of the emotional impact. The […]
In my last column, I discussed the two most basic elements of estate planning — wills and powers of attorney — and how they affect the intergenerational transfer of wealth that your clients must eventually deal with. Now let’s look at one of the more common intergenerational asset transfers — the family cottage. Many of […]
The crippling downturn has done nothing to dampen the Canadian dream of owning a cottage, cabin or chalet that can serve as a year-round recreational property and, for some, as their primary residence, according to a Royal LePage Recreational Property Report released today. The poll shows recreational properties are still considered a safe long-term investment, […]
(June 2007) Cottages are synonymous with family get-togethers, but without the proper planning, it’s the real estate agent who could be showing it off next summer. To prevent a client’s cottage from falling out of the family’s hands, it’s important to figure out who’s going to pay the capital gains tax once the cottage-owner passes […]
Vacation properties, such as cottages, are in high demand. Prices are skyrocketing, bringing healthy investment returns to those who have them, and with low-rate mortgages, buying a “little piece of heaven” has never been easier. But cottages also have an emotional value that clouds the judgment of normally rational investors, so advisors need to be […]
Don’t bother trying to schedule an appointment with your clients just yet; they’re still at the cottage. When they get back though, if you get a chance to talk about it, there are a number of tips and easy suggestions you can discuss with your clients that will help them save money down the road. […]