If your rural dwelling is a vacation property and you’ve owned it a long time, then there are a whole lot of new economic issues to contemplate as you enjoy your morning brew or nighttime toddy.
Like how do you deal with planning to either sell or hand the cottage down to the kids in the future? There’s no escaping death or taxes and your adult children are waiting in line.
Unfortunately, so is the Government.
Gone are the days that we camped in bunkies and divie’d up chores and summer weekends. Cottages are investments now and subject to corporate rules.
If you bought your cottage decades ago, your initial financial investment has catapulted you into a mega classification worthy of winning the lottery.
A cottage that was once $100,000 has quite an inescapable expected tax payout if it is now worth a million and it all happens when the name on ownership has changed. Without major receipts showing extensive improvements and upgrades, you’re likely bequeathing your heirs a major pain in the wallet which might make them lose the cottage - that is, if they are unable to come up with the money Capital Gains, figures you owe. You need a plan. There are options.
To find out about these options register to attend our MLCA hosted, Cottage Succession Webinar facilitated by experts from the Federation of Cottage Association.
