Every summer I talk about how your cottage is a tax time bomb. As you know, a family only has one principal residence, so if the cottage increases in value there will be tax to pay on the sale of the cottage or on the death of the owners of the cottage. I have reminded you in the past to get receipts for any work that you have done on the cottage and hold on to these receipts.

This year, what I am talking about is asking your adult kids about the cottage. Is it true that all of your children are interested in inheriting the cottage? It is possible that one or more of your children have no interest? Maybe they live too far away or they have a cottage of their own, etc. Maybe none of your kids are interested. You can simplify your will if there is not going to be any fighting over the cottage.

There is no better time to resolve this issue with your will than while you are at the cottage this summer, a great time for a family discussion.

Your Cottage is a Tax Time Bomb

July 31/18

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