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Your Family Cottage: A Legacy or a Tax Liability?

The family cottage isn’t just property—it’s memories, milestones, and legacy.
But without the right plan, it can quickly become a major tax burden for the next generation.

Here’s how to protect what matters most—your family, your memories, and your legacy.

What’s at Stake

When a cottage passes to your heirs, CRA treats it like a sale at fair market value. That means potentially huge capital gains taxes your family may not be prepared for.
  • Massive capital gains tax bills at death
  • Forced sales of cherished family property
  • Unexpected financial burdens on loved ones

Consider This Example

  • Cottage originally purchased: $200,000
  • Current market value: $1.2 million
  • Capital gain: $1 million
  • Taxable gain (50% inclusion): $500,000
  • Taxes due (e.g., ~25% rate): $125,000
That’s a tax bill that must be paid at the owner’s passing—potentially forcing your family to sell the cottage just to pay CRA.

The Good News?

With proactive planning, there are proven ways to protect your cottage and ensure it remains in your family for generations—without the tax hit.

Key Strategies to Protect Your Cottage

Principal Residence Exemption (PRE)

Can reduce or eliminate capital gains if it qualifies as your principal residence.

Family Trust

Can freeze the cottage value, allocating future gains to beneficiaries and reducing future tax.

Joint Ownership & Gifting

Gradually transferring ownership during your lifetime to spread tax obligations.

Life Insurance Solution

Use insurance proceeds to cover capital gains tax at death—preserving your cottage for family.

Buy-Sell Agreements

Clear structure for ownership transfers within the family.

Our Approach

You built your cottage around family moments—not CRA tax calculations.
We help you create a customized plan to:
  • Reduce capital gains exposure
  • Secure liquidity to pay future taxes
  • Keep your cottage in the family for generations
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Take Action—Protect Your Family Legacy

Don’t let taxes and poor planning jeopardize your family’s special place.
Let’s create a plan that protects your cottage for the next generation—and the next after that.

Schedule Your Cottage Legacy Session ➡️