Who Gets the Cottage?
Protecting Your Family's Recreational Property
The family cottage or recreational property is often one of the most cherished assets in a family. It holds memories of summers spent together, holidays, and family gatherings. But what happens to the cottage when you're gone?
Many Canadians don't realize that the transfer of a cottage or recreational property upon death can trigger significant tax consequences. The deemed disposition at death means capital gains taxes must be paid, which can run into tens or even hundreds of thousands of dollars.
The Challenge
- Capital gains taxes are triggered upon death
- The cottage may need to be sold to pay the taxes
- Family disputes can arise about who inherits the property
- Multiple heirs may have different ideas about the cottage's future
The Solution
Life insurance can provide the funds needed to pay capital gains taxes, ensuring your family can keep the cottage without having to sell it. This allows your legacy to pass on to future generations exactly as you intended.
Proper estate planning can also help ensure a smooth transition of ownership and avoid family conflicts.
Contact Barrons to learn more about protecting your recreational property for future generations.