The family cottage is often one of the family's most prized possessions and preserving it for the enjoyment of future generations is a prime estate planning objective.

However, when the children inherit the property there can be a substantial tax bill. The family cottage is considered capital property and capital gains tax is due on the appreciated value. With proper planning your objectives can be realized:

• Family cottage is inherited by one or more children.
• Capital gains tax is paid without selling or mortgaging the cottage.
• Children not inheriting the cottage receive their fair inheritance.

Establish an insurance policy with the insurance amount at least equal to the projected tax payable at life expectancy. The policy is to provide tax-free insurance proceeds to offset the tax liability on the cottage capital gains and to provide additional estate assets. If desired, for a fair inheritance to children not inheriting the cottage. The plan is set as joint last to die, assuming that the surviving spouse inherits the deceased spouse's assets and therefore the capital gains tax liability is at death of the surviving spouse. For a single client, a single life policy is established. The beneficiary option should always be payable directly to the heirs, as insurance proceeds received by the estate are subject to provincial probate fees.

Life Insurance is used to pay tax obligations upon the transfer of a cottage or other secondary property.

To learn more about our Life Insurance Solutions click here.

Amongst life's financial challenges are the cost of education, healthcare, and retirement. At Flewwelling we want you and your family to be able to meet these needs as easily as possible. That's why we offer a comprehensive range of financial planning products that allow you to invest now in your family's future. Arrange a consultation with us today!

Education Savings Plans for Children (RESPs) - We offer a variety of savings plans that allow you to qualify for the government's new Canada Education Savings Grant (CESG). Your annual grant will be equivalent to 20 percent of your annual RESP contribution, up to a maximum of $500 annually per child.

Individual Medical/Dental Coverage - Let us help you access a comprehensive employee benefit package specifically designed for self-employed individuals and employers with one to five employees.

Registered Retirement Savings Plans (RRSPs) - Whether you are looking to start a plan or just conduct an objective review, we can help. We offer you the power to choose - immediate tax saving plans, tax sheltered growth of investments, spousal RRSPs , and a plan to get there. We can also help you convert your RRSP to an Annuity or a Registered Retirement Income Fund (RRIF) at the best rates available on the market.

Annuities - A payment provides a series of payments for a specified number of years after retirement. Annuities can also provide payments for your life, your spouse's life, or the lifetime of both you and your spouse. This guaranteed income offers both stability and security. For many people this provides an easy worry-free answer to retirement income needs. Different types of annuities are available.

Registered Retirement Income Fund (RRIF) - A RRIF is a popular option for converting accessible savings, such as RRSP's into regular income during retirement. A RRIF offers considerable income flexibility. At the same time your savings remain tax sheltered and under your investment control. You have the additional flexibility of being able to adjust how much income you receive, how often you receive it, and even how it is invested. A RRIF provides for a minimum annual income for life.

To purchase financial planning products, request a quote or contact us @ 1800-469-5611 and ask for Sean Hart.