Fact Sheet Intro: Keeping the Family in the Family Cottage
Members – access printed materials on this topic, here (members only)
How to plan for cottage succession for future generations despite the multiple financial hurdles and inevitable family issues.
Succession Stumbling Blocks
The current ownership generation is approaching or past retirement age. Discretionary income available for cottage expenses are decreasing, at the same time that cottage ownership costs (taxes, utilities, compliance with environmental regulations, septic system upgrades, maintenance, repairs) are increasing. Financial planning and prioritization of resources is critical to enable this generation of owners to afford to retain the cottage for the next generation.
The successor generation is challenged by the economic downturn and are less able to afford to buy a new cottage or afford sole ownership of any cottage property. For many, the only viable cottage opportunity for themselves and their children is to preserve the existing cottage in the family, sharing the usage and costs with siblings and other family members. Family cottages shared by multiple sibling families can cause inevitable friction, differences and disputes, for any family, putting the continued survival of the family cottage at risk following the succession.
With notes from Peter Lillico of Lillico Bazuk Galloway Halka Barristers and Solicitors. Peter’s practice is concentrated in the areas of Estate Planning, Business and Corporate Law, and Real Estate.
For more cottage succession information, visit his website at www.lbghlaw.com.