Owning a vacation home can create complicated family estate and income tax issues. Planning for the transfer of the family cottage requires a series of thoughtful steps. The cottage can be any vacation home and, whether it's a ski chalet or condo, waterfront property or hunting land, all have financial and emotional ties to a family.
Now that Spring is on the horizon, thoughts turn to sunny days filled with family memories made at a vacation home. But owning a vacation or second home can create complicated family estate and income tax issues. Without thoughtful planning, transferring the home and property to children and grandchildren can turn those joyful and peaceful family memories into an emotional and painful process.