By Brenda Spiering, Editor, BrighterLife.ca
We’ve all heard the horror stories – families torn apart by fighting over the inheritance of their family cottage. The place that used to bring them all together has suddenly become such a source of conflict it’s driving them apart.
Passing on the family cottage isn’t easy. Why? Because, for most, it isn’t just a piece of real estate. It’s a place filled with fond childhood memories of fishing and swimming and lying out under the stars on a warm summer night. But it takes more than charged emotions to cover the ongoing cost of maintenance and property taxes.
What’s the best way to pass on the family cottage? You need careful planning and a sound financial strategy that includes the following two steps:
1. Talk to your family
It won’t be easy. But you have to try to put your emotions aside and determine the most sensible course of action. Consider:
2. Consult a financial advisor
A financial advisor can suggest a number of strategies to help mitigate many of the problems associated with passing on a cottage. Plus, depending on your needs, they can direct you to other professionals such as an estate-planning lawyer or tax accountant. Some of the options they may suggest are:
Soaring property values and related taxes have made passing on the family cottage a lot more complex than it used to be. But careful planning can help ensure it will be enjoyed for generations to come.
Original source: How to Prevent Family Cottage Feuds, by Brenda Spiering, Editor, BrighterLife.ca
© Sun Life Assurance Company of Canada, 2014
Ong Financial Planning Services Ltd.
John Ong, CFP, CHS, CPCA, CCS
Financial Planner
Tel: (604) 676-1088
Email:
1275 West 6th Avenue 3rd floor
Vancouver, BC
V6H1A6