The family cottage is a place where unforgettable memories are made. There’s just nothing that compares to the nights gazing up at a sky glowing with an endless array of stars, jumping off the end of the dock into the crisp cool waters, taking the family (and the dog) out for a boat ride to watch the sunset, or peacefully paddling a canoe across a calm cove in the early morning. There is no price tag that can be put on the numerous experiences that are created at the cottage.
Chad Allison knows these experiences first-hand. His parents bought their cottage in 1972, the same year he was born. His summer memories growing up were of swimming, fishing, waterskiing, and campfires. Of course, as he grew he was also expected to chip in with all the work involved: chopping wood, cutting grass, and fixing things (there’s always something that needs to be repaired at the cottage!). Chad learned from these experiences that the benefits of having a recreational property also come with a lot hard work and dedication.
A few years ago, Chad and his family decided that they had outgrown the shared family cottage. They no longer wanted to deal with the family dynamics of who gets it for the long weekend, who pays for what, and who does the work. So, they ventured out and bought their own modest fixer-upper on a larger lake. They have been busy ever since with repairs, renovations, and landscaping. It ended up being a welcome place to escape to when COVID hit. They were fortunate to have reliable Internet allowing them to work from the cottage, and the kids were even able to do online schooling with the beautiful backdrop of birch trees and the lake.
There is one thing however that all cottage owners are eventually faced with that requires some careful thought and detailed planning. What happens to the cottage when the parents no longer want to maintain it or have moved on to that cottage in the sky?
Chad, who is a Senior Wealth Advisor at Scotia Wealth Management, has seen this question come up frequently in his practice. The first step, he advises his clients, is to ensure that proper planning is in place that details all the unique considerations. What is the ownership structure of the cottage? Are there children that want to takeover the ownership? Can the children afford the cottage? Are there capital gains to consider, and if so are there strategies that can help deal with the gains? Each family’s circumstances are different and require the right planning and advice.
Chad’s team at Scotia Wealth Management helps their clients with these kinds of sophisticated situations, whether it’s the succession of the family cottage, the sale of a family business, or any other complex family structure that needs to be addressed. The comprehensive Total Wealth Plan offering that Chad’s team provides to their clients sets them apart from other advisors that may just cover the basics, leaving you to figure out the other pieces of the puzzle on your own.
Scotia Wealth Management ties in all aspects of your personal and financial information, assesses how this matches up with your individual goals, and helps to determine strategies to obtain these objectives. They work with your other professionals, such as lawyers and accountants, to ensure that everything is synchronized and that nothing is overlooked.
Scotia Wealth Management also has the resources to help deal with other complex matters such as potential estate equalization, estate tax coverage, and reviewing of personal and corporate estate plans.
So where does the family cottage fit into all of this? Well, with the proper planning and communication the succession of the family cottage can be part of the Total Wealth Plan that Chad’s team at Scotia Wealth Management develops to help you achieve the peace of mind you deserve. The beautiful cottage memories remain intact and your days can be spent relaxing in the Muskoka chair while watching the sun dance off the lake.
If you would like to know more about how Chad and his team at Scotia Wealth Management can help preserve your legacy, please reach out to them today.
