June 2011


For most of us, there are wonderful memories attached to a family cottage. However, at some point, cottage owners will face the financial and emotional challenges of selling or transferring this cherished family asset. To ensure that those priceless memories continue for generations to follow, it is important to plan appropriately. Addressing these issues today, especially for those who are facing large capital gains, can help ensure tax-efficient handling of your estate while keeping harmony in the family.

    Strategies for effective transfers to reduce the tax you pay

    • Transfer cottage to the surviving spouse
    • Consider making the cottage your principle residence, if it has appreciated more than your home
    • Implement a life insurance solution to help fund the tax liability upon transfer and/or to equalize the estate for those siblings who are not interested in owning the cottage
    • Consider owning the property jointly with your children to reduce or avoid probate taxes where applicable
    • Utilize a trust which can help in situations where children may not be able to handle financial responsibilities of the cottage or where creditor protection may be an issue

      Act today, to save for tomorrow

      Identifying and discussing those issues that may cause conflict with your children / beneficiaries and acting on opportunities to reduce taxes are all key aspects of a successful cottage succession plan.

          If you would like a copy of our educational report entitled “Cottage Succession - Keeping it in the family”, that discusses these strategies in more detail or if you would like help developing an effective plan, please contact your Investment Advisor.


      Previous Tax & Estate Planning Strategies
      View items by year:






      • Critical Illness Insurance

        Nov 01, 2011

        Critical Illness isn’t something any of us like to think about, but unfortunately it happens. Despite our progressive healthcare system, we still are faced with increased waiting periods and out of pocket expenses for additional equipment and alternative treatments...
        read more
      • The tax benefits of flow-through share investing

        Oct 01, 2011

        Investing in flow-through shares has been a popular tax reduction strategy for several years in Canada. Flow-through shares allow the issuing company to renounce or “flow through” tax expenses associated with Canadian explora­tion activities to investors...
        read more
      • Modular Benefit Plans

        Sep 01, 2011

        While the cost of group insurance continues to rise, employers are ready to accept reasonable cost increases in order to maintain competitive compensation packages that will help them attract and retain the best employees...
        read more
      • Registered Education Savings Plan

        Aug 01, 2011

        With the ever increasing cost of post secondary education, the tax-deferred growth of a Registered Education Savings Plan (RESP) and the Canada Education Savings Grant (CESG) are attractive ways to plan for this major life event...
        read more
      • Estate bond

        Jul 01, 2011

        Life Insurance can be used as an effective way of accumulating and transferring wealth. An Estate Bond is a financial planning strategy that transfers non registered savings from a tax exposed investment to an exempt life insurance policy...
        read more
      • Cottage succession

        Jun 01, 2011

        For most of us, there are wonderful memories attached to a family cottage. However, at some point, cottage owners will face the financial and emotional challenges of selling or transferring this cherished family asset...
        read more
      • Insured Annuities

        May 01, 2011

        An Insured Annuity provides a guaranteed, tax preferred income stream for as long as you live...
        read more
      • Changes to the Canada Pension Plan and Quebec Pension Plan

        Apr 01, 2011

        The Canada Pension Plan (CPP) has recently implemented changes to benefits that will be phased in gradually over a six year period beginning in January 2011. If you have not already applied for CPP retirement pension benefits...
        read more
      • Tax planning checklist

        Jan 01, 2011

        As we embark on a new year, people tend to turn their attention to planning for the future. While we believe that tax planning should be an integral part of the overall wealth planning...
        read more