Tim Borody and Brad Smith sit down to discuss one of the most emotional and complex secondary assets a family can own: the family cottage. While a recreational property builds decades of cherished memories, passing it down to the next generation without a proper plan can trigger massive capital gains tax liabilities and strained sibling relationships.

Protecting Your Recreational Property

• The Emotional & Relationship Risk: Tim and Brad explain why family communication must come first, outlining how unmanaged expectations around usage schedules, maintenance, and unequal financial situations between siblings can destroy relationships.
• Drafting a Family Cottage Agreement: Learn the essential elements of a formal written agreement—including usage rotation systems, cost-sharing formulas, buyout provisions, and dispute resolution mechanisms—to eliminate future hostility.
• Handling Deemed Dispositions & Tax Bills: Understand how the CRA treats a cottage transfer as a "deemed disposition" at fair market value upon the second parent's death, often creating an immediate six-figure tax bill even if the property is not sold.
• Using Permanent Life Insurance as a Solution: Discover how a joint-second-to-die permanent life insurance policy can instantly generate tax-free liquidity upon death, allowing the estate to pay the CRA without forcing a sale of the property.

Don't leave your family legacy to chance. Join Tim and Brad to get practical tips on how to start the conversation early, align your heirs, and keep your cottage in the family for generations to come.