« Has there ever been a better time to eat at a restaurant? | Main | The best method of payment: debit or credit? »

August 31, 2021

Limiting the tax bite on the family cottage

A few weeks ago, we featured a general article about how to engineer a tax-cost-effective transfer of the family cottage to the next generation.

Some readers were curious as to how much it might cost to use life insurance -- either to pay the capital gains tax required down the road or to provide some liquidity to adult children who would never use the cottage.

For most people, passing on a vacation property comes down to one of two options: Deferring taxes owing until the death of a surviving spouse or transferring ownership to the children now and pay any taxes owing up front. 

Here's a more detailed look at the various options including joint, last-to-die insurance coverage (often paid by those lucky kids) -- with the caveat that professional advice is a must when going this route. 

By Gordon Powers, MSN Money



Post a comment


Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...