The wish of most cottagers is to pass on their cottage to the next generation. Most are keenly aware of how special and valuable the cottage experience is, and of how difficult it will be for their children to be able to find and afford a cottage of their own. However, most are not aware of how many obstacles must be overcome to ensure a realistic chance of keeping the cottage in the family.

Some of these obstacles include:

  • Because of changes to the Income Tax Act, many cottages will have to be sold by executors upon the death of the parents simply to pay decades of accumulated capital gains tax liability .
  • A child’s separation or divorce may result in the cottage being sold to satisfy the financial demands of the divorcing in-law.
  • A health crisis such as a stroke or Alzheimer’s Disease causing mental incapacity may result in the government forcing a sale of the cottage.
  • Differences between the children’s incomes and expectations may cause such family friction that the cottage is sold by the children themselves within a few years of inheriting.

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