Handing down the family camp
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One of the biggest emotional problems asset planning is the determination of the future of the family tent. Here are some tips to be followed: Communicate “Transfer of the family home your child can be your dream, but it should not be their dream,” says Hugh Chartered Accountant Nichol, a partner in Dawson Gray Chartered Accountants in Haliburton. “Communication is the key. As parents, you need to discuss what you want to do, then talk with your children about them. ” Make sure your kids can afford it “The acquisition of housing is one thing, but in this situation, to keep it is another,” says Nichol. “Property taxes, insurance and maintenance can be very costly.” Determine what is fair for all “A child may not want the cabin and to the extent of it, while the other may not be,” says Sue Chartered Accountant Bragg, a partnership with Gaviller & Company LLP in Collingwood. “In this case, the mass could be done to the shack to children and other children, an amount equal to your institution.” Decide, if you wish, we descend “It can ensure that the house until his death, and leave it on your real estate, tax moves for as long as possible,” says Bragg. “You could also on the hut, for your children, if you live, but you could trigger gains from the disposal of years before you need it. ” Remember that if you use at home, in front of their children to death, which is the market value have been sold. In addition, as you, your children have only one exemption from the principal residence. While maintaining the cabin May your presence will reduce fees opening Bragg said that these costs are often relatively small compared to tax, depending on the value of any property. Reduce tax “An opportunity to become familiar with the tax is that the insurance pay a tax on your death,” said Nichol. “You can create your shack designate as your principal residence to avoid capital gains taxes.” Nichol advises you on your taxes in 1994 to see if you have the opportunity, which this year with the election of identifying capital gains, the liabilities have been made, but not before February 22, 1994. Do you have a comprehensive agreement “It is wiser for brothers and sisters who together their own homes, to determine how decisions are made and how the costs are shared,” says Bragg. Ask a Chartered Accountant “Values of transfer of assets and planning issues are complex,” says Nichol. “At CA, you can determine what the taxes and how to reduce them.” |