Estate Planning for Cottage Owners
June 28th, 2008 | by Editor |Canadians love their Summer getaways. Have you talked with your Certified Financial Planner about how your cottage fits into your estate planning.
If you have a cottage and want to make sure that your loved ones can continue to enjoy it in the years to come, there are some important steps you should take to make sure that this pleasant Summer getaway doesn’t end with you.
In Canada, principal residences are not subject to capital gains taxes – in most cases, when you sell your home you will not have to pay any taxes on the amount it has increased in value since you first purchased it. Unfortunately, second homes and cottages (if they are not your principal residence) are not exempt – meaning that your heirs may have to pay a significant tax bill in order to keep the family cottage.
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