Passing On The Family Cottage

For many families, a summer or winter home or cottage is one of their most treasured assets. Most cottage owners want the cottage to stay in the family for generations. However, this requires significant thought and planning. Families need to know that legal costs and family disputes come with poorly managed cottage succession. This article identifies common problems and some solutions for passing on the cottage. It is not meant to be exhaustive. Legal advice should be sought so that the particular circumstances of each family and cottage can be considered.

Be realistic

To begin, we suggest that families consider the "what if" questions regarding the cottage and the next generation. For example, what if only one child wants the cottage, but cannot afford to buy out the other children? What if a child or children cannot afford the upkeep? What if some children live or move too far to use the cottage? What happens if a child has a divorce or bankruptcy or dies? What