Archive for the ‘Cottages and Estate Planning’ Category
Saturday, October 15th, 2011
If you hold an asset jointly with an adult son or daughter, such as a bank account or a cottage, you may be surprised to learn what will happen to the asset after you die. Like many parents, you might assume that the asset passes directly to your surviving child and that he or she can do whatever he or she likes with the asset. However, unless you have made your intentions clear, the law will presume that your child is holding the asset in trust for your estate. In other words, the law does not presume that the asset belongs to your child. (more…)
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Tuesday, July 19th, 2011
In the midst of this glorious heat wave, let’s stay firmly rooted in cottage-mode, and afloat in the cool lake in particular, and look at a final series of issues you will want to consider for your cottage sharing agreement. Please note that the issues are not set out in any particular order of relevance.
One major, and possibly contentious, issue may be the use of the cottage itself. How will usage of the cottage be determined? Will a formal schedule be prepared? What about usage by family and friends of the owners? Be sure to fully negotiate this issue with all parties. (more…)
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Sunday, July 3rd, 2011
As the first long weekend of the summer winds to a close, let’s stay in cottage-mode a while longer and delve into the nitty-gritty questions you need to consider before having a cottage agreement drafted. Start with the basics,
- If the cottage is not already owned, how should the purchase price be divided?
- How should title to the property be held? For example, who should be involved, owners and spouses or owners only? How should title be held among the various owners, as joint tenants with right of survivorship (last one alive owns it) or tenants-in-common (each person’s share passes on death as per the person’s will; if no will, according to provincial intestacy laws)? (more…)
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Monday, June 20th, 2011
Lazy days by the lake, casual dinners on the deck, and cozy nights by the bonfire – the stuff that memories are made of. After a long, cold winter, cottage season has finally arrived and is undoubtedly in full swing. Although most of us own our own home, many of us share family cottages with siblings or perhaps jointly own a cottage with a few close friends. Whatever your specific situation, if you planning to or already share ownership of a cottage with others, consider the importance of having all the owners negotiate and sign a cottage agreement. (more…)
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Sunday, February 14th, 2010
Although getting a Will done ranks right alongside a trip to the dentist, having an up-to-date Will is an expression of caring that can ease the sorrow of your passing. Dying without a Will leaves your grieving loved ones puzzling over why you didn’t care enough to get it done and wondering how to deal with the resulting chaos.
For some of us with few assets and if no one is expecting to have access to our assets, Ontario’s intestacy laws (how an estate is distributed upon death if there is no Will) may be enough. For example, if a married person dies without kids and having most assets jointly-held with his or her spouse, the surviving married spouse gets it all. If the deceased was single and never had kids, his or her parents share the estate. However, having died without a Will means that it will take longer to access the assets and settling the estate will require more time and money.
The distribution dictated by Ontario’s intestacy laws is, in our experience, rarely what people expect and may come as a bit of a surprise. For example, Chris’ marriage ended three years ago but no separation agreement was ever signed. (more…)
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Thursday, June 18th, 2009
The facts in this blog have been changed to preserve client confidentiality; however, both the real and fictitious facts illustrate the same tax and estate planning issues that arise in such situations and the importance of addressing them with clients and documenting that you have done so. (more…)
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