A family trust could be the right home for your family cottage
A family trust can be a beneficial way to manage and pass down a cottage to future generations. It separates ownership from use, potentially deferring taxes and protecting the property from creditors. However, setting up a trust may not be suitable for every cottage owner, and professional advice is recommended.
- ▪A trust is a legal relationship involving a settlor, trustee, and beneficiaries.
- ▪Setting up a trust can help avoid probate fees and separate ownership from use.
- ▪Transferring a cottage to a trust may trigger tax implications, so consulting a tax professional is advised.
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Open this photo in gallery:Boathouses on Lake Muskoka near Port Carling in July, 2025. If you want to defer taxes or protect your cottage from mismanagement or potential creditors, a trust can work, writes Tim Cestnick.Fred Lum/The Globe and MailShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountOne of the things I appreciate about our cottage is the skylight. Okay, it’s actually a hole in the roof and it’s not supposed to be there. But a guy is coming on Friday to fix it – and the tree that fell creating the problem has already been cut up for firewood.
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