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Hi there,
Most families don’t lose the cottage because they want to.
They lose it because they have to.
Here’s what happens in Ontario: when someone passes away, the CRA treats certain assets like they were sold. Even if no one sells anything.
That creates a tax bill.
And that bill? It’s due in cash.
Take a simple example:
A cottage bought for $200,000 is now worth $1.2M.
That’s a $1M gain. Rough tax bill: ~$250,000
The family doesn’t owe it later. They owe it now.
So families are left with bad options:
- Sell the cottage
- Take on debt
- Use personal savings
- Or rush decisions during the worst possible time
Life insurance doesn’t eliminate the tax. It solves the timing problem.
It creates liquidity right when it’s needed.
That means:
- No forced sale
- No panic financing
- No breaking the plan
Estate planning isn’t about avoiding taxes. It’s about avoiding chaos.
An estate review can identify risks, calculate potential taxes, and show strategies to protect your assets and your heirs.
Want to learn more? Let's chat.
(No pressure, just smart advice.)
Talk soon,
David |
