Now what happens if we add Jill’s grandparents into this
picture. We’ll assume that through the years they have saved
well, expanded their wealth, and want to contribute the
maximum $200,000 to their granddaughter’s RDSP. Grants
and Bonds are only based on the income of Jane and Jack so
we can carefully design the gifts and deposits to optimize all
government grants. This is entirely flexible for families to
contribute within their means, up to $200,000. And all
growth remains tax-sheltered.
A different story is Mark at 35, paraplegic since a diving
accident at 18. His parents Mary and Mel are willing to assist
Mark to the extent he doesn’t lose provincial support and
drug benefits. From their Wills, or even as beneficiary from
Achieving Family Success Through
their RRSPs, RRIFs or other savings (by Mark’s age 49) they
can contribute up to $200,000 to Mark’s RDSP. Correctly
Cottage Succession Planning
designed this will increase Mark’s financial resources for life,
Cottages and death are like oil and water for a lot of families.
insulate his provincial benefits, and shift the parents’ high-tax Cottages and death are like oil and water for a lot of families
assets to Mark’s low tax rate.
Family cottages hold tremendous financial and emotional
Achieving Family Success Through
Cottage Succession Planning
value cottages
for families,
but tremendous
they can also financial
be a huge source
of family
hold
and emotional
One catch – over age 17, the RDSP beneficiary Family
conflict. You know that there will come a time, because of
value
families,
but during
they can
be a that
huge
your for
passing
or a sale
your also
lifetime,
you source
will no of fami
should have a Will (if competent to make one). conflict.
there
will You
come
a time,
because of
longer You
be the know
owner that
of the
cottage.
know
the decisions
Otherwise provincial laws of intestacy will arise at the your
passing
or impact
a sale during
your and
lifetime,
that
you to will
you
make will
your family,
you don’t
want
fail no
beneficiary’s death. Henson Trusts* (see below) can also fit longer
them. be the owner of the cottage. You know the decisions
alongside an RDSP to support the beneficiary for life, and you make will impact your family, and you don’t want to fai
If you are like most family leaders, you want to secure the
then pay out to other family or philanthropy as desired. In them.
financial and emotional fortunes of your next generations. You
these discussions we include consultation with an estate lawyer.
want the resources you have accumulated to further the success
are family.
like most
leaders,
want to secure
of your
You family
want your
life to you
be recognized
as a the
Of all the families who can qualify for RDSPs, less than If you
financial
and
emotional
fortunes
of
your
next
generations.
Y
source of strength for your family.
one in ten actually own one. That’s a failure! It means
want
the
resources
you
have
accumulated
to
further
the
succe
you and I can each take a moment at times to consider our
The biggest
obstacle
to your your
family’s
is a lack of as a
of your
family.
You want
life success
to be recognized
friends and family… Who needs this article? Who could source
planning.
Poor planning
can family.
manifest in many ways:
of strength
for your
inadequate tax planning, impractical expectations of sharing
find encouragement in reading this?
the joys and responsibilities among beneficiaries, and
biggest obstacle
to for
your
a lack of
of
Disability can be a tough card for anyone and for their family. The imbalanced
accounting
the family’s
disparate success
financial is
situations
Poor planning
can manifest
many ways:
your beneficiaries.
The greatest
oversight, in however,
is the
RDSP is a major boost to help safeguard their wellbeing and planning.
emotional tax
costs
and the damage
to family
relationships of
that
inadequate
planning,
impractical
expectations
sharing
income for life.•
can cause.
the poor
joys planning
and responsibilities
among beneficiaries, and
imbalanced accounting for the disparate financial situations o
A good plan is ongoing and evolves. Through knowledge
Brian Weatherdon of Sovereign Wealth Management Inc., is a
your
beneficiaries.
The communication
greatest oversight,
however, is the
gathering,
deliberation,
and maintenance,
Certified Financial Advisor, retirement coach, and consultant on wealth
emotional
costs
and
the
damage
to
family
relationships
cottage succession and your life can be the source of strength that
and aging. 905-637-3500 [email protected]
poor
can
and planning
inspiration
for cause.
your family. It doesn’t have to be a prickly
The information provided is general in nature, and should
event that launches generations of discontent.
not be relied upon as a substitute for advice in any specific situation
plan is ongoing and evolves. Through knowledge
requiring appropriate legal, accounting, tax and other professional A good
The
success
of your family
requires you plan
for maintenance,
your cottage.
gathering,
deliberation,
communication
and
guidance. The views expressed are those of the author and not
Brown
Lawyers
has
developed
a
service
for
families
to get
necessarily those of the issuer of any financial products for which cottage succession and your life can be the source
of strength
informed, identify and communicate intentions, understand
the author may act as a distributor. Any names and/or circumstances
and expectations
inspiration and
for create
your tools
family.
doesn’t
have
to be both
a prickl
that It
support
family
success,
mentioned above are altered for confidentiality.
event
that launches
generations
of discontent.
emotionally
and financially,
through
cottage succession.
*A Henson Trust (sometimes called an absolute
discretionary trust), in Canadian law, is a type of trust
designed to benefit persons with disabilities. Specifically,
it protects the assets (typically an inheritance) of
the disabled person, as well as the right to collect
government benefits and entitlements.
Contact of us your
today
to start
your plan
and for
take your
your cottag
The success
family
requires
you plan
first has
step
to generational
success.
Brown Lawyers
developed
a service
for families to get
informed, identify and communicate intentions, understand
expectations and create tools that support family success, bot
emotionally and financially, through cottage succession.
brownlawyerspc.com
Contact
us today to start
your plan and
take your
Burlington
Waterdown
Dundas
first step Rd to generational
success.
39-3455 Harvester
25 Mill St N
5 King St E
33
Silver & Gold Magazine
~ SUMMER 2019
905-632-2822
905-528-6346
905-627-5487