Together we step into the future with confidence.

The Cottage

Jun 19, 2019

Our advisors can help protect what matters most to you and your family.

When it comes time to pass your cottage to your children or grandchildren, you need to make sure you have a number of things in place, so it’s passed

down as you intend.

Don’t forget about taxes!


Your cottage is valuable, which means when you pass it down, you might have to

pay an unexpected tax bill.

1) Talk to your family. (detail your intentions, listen to your family and their expectations so you make a decision that works for everyone)

2) Professional advice. (lawyer, accountant and financial security advisor)

3) The importance of a “WILL”.  One of the first things you should do is create a will – if you don’t already have one. Generally, a “WILL” sets out who gets your cottage and any other assets (like property or investments) when you die.

When you die, Canada Revenue Agency automatically assumes you sold your cottage for its fair market value. If your cottage is worth more than when you bought it, you may have to pay capital gains tax on half of that increase amount.

Your options here could include:

-Your estate or your children could pay costs from money they already have.

-Your children could borrow money or take out a loan.

-You could purchase life insurance to pay all, or part of, the anticipated costs.

It’s a cost-effective way for your loved ones to receive cash when it’s really needed.

And it’s a flexible option that can be set up to meet your specific needs, situation and budget.

- Set up a buy/sell agreement

- Leave it to one child and divide everything up fairly. To help avoid challenges with leaving your cottage to only one child, you can divide your other assets (house, investments, property, etc.) equally among your other children.

Talk to your financial security advisor about available options. They can also meet with you and other professionals to help build a plan for your cottage to meet your needs.