The Cottage

Cottage sales surge by as much as 25% during the pandemic as people look to flee the city. If you have decided to bequeath your cottage to your children in your will, you may know that there could be substantial capital gains tax due. Where does the money come from?

Let’s consider some alternatives:

• Your estate or children could pay the income tax liability from current funds.

• Money could be borrowed to pay the tax.

• Money could be paid in installments after your death.

• Use appropriately designed life insurance to pay taxes