How To Transfer Assets To The Next Generation (Cottage Example)

In this video, we'll go through 4 options to transfer an asset to the next generation. Everyone's situation is going to be a bit different, and the ability to handle the tax situation is going to be different. Just know that they'll probably be pros and cons for each option that you are going to have to weigh.

OUTLINE:
0:00 - Introduction
0:29 - Announcements
3:46 - 4 Key Ways
4:31 - Option One
5:42 - Option Two
7:09 - Option Three
8:39 - Option Four
9:34 - Summary
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DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.

[fredhooshi]

it is so obvious how about a trust you did not mention

[ronczich]

The only way passing a cottage on to the next generation works is you have an only child. Passing on a cottage to numerous children usually creates division in siblings once you have passed on. Siblings may get along today, but once money & control factors come into play it is amazing how siblings act.

[ie]

Another great video...actually, we just bought a cottage so this video has given me something to start planning towards

[normjones]

Thanks great info, but how do you transfer the cash that you mentioned without implications ?

[JimSturney]

Great video! How about strategies to pass on the principle residence to avoid passing on the burden of having the executor selling it

[prashantpatel]

Grate video, thanks for sharing. Does having corporation for rental units help to transfer the asset to next generation without tax?

[azalealeonardo]

What is your opinion on whole life insurance? Not only for the death benifit but as a retirement solution to add some passive income?

[lucyyiu]

How life insurance works to reduce the tax? Amy recommendation for life insurance company that offer this kind of reduce of tax? Thanks

[invest]

great video. How much of a tax bill % does one have you pay that is being passed to the next generation in BC ?

[michaelhardie]

I'm glad you touched on 4. Sometimes passing on a asset like a cottage or house is more of a disservice when there are multiple kids (who do or do not get along)

[edwardr]

To reduce the tax burden you could sell the cottage to the adult kids over 5-10 years and loan them the money at zero interest to pay you. Upon death you forgive the loan( the kids don’t have to come up with any cash to pay you). The benefit of this is that you may be in a lower tax bracket during the transfer years thereby paying less taxes. You also avoid probate and will likely pay a lower land transfer fee. You also maintain partial control. If you have a falling out with one or your kids you could always demand they pay back the loan. Will need a real estate/tax lawyer to set it all up. Could save you tens of thousands of tax dollars.

[timbeneteau]

Could I not just add one or both of my children's names to the title deed of the cottage while I'm alive, much the way I added my wife's name to our house deed after we got marries? Yes, probably lawyers' fees, but less than any land transfer tax isn't it? There could be all kinds of 'understandings' about responsibilities and intentions after I pass, but that's a discussion for another day.

[biancaleva]

I own a small building and have underage daughter, what would be the best way to give her part of ownership, before I die. Thanks

[lucyyiu]

How about add the names of the children on the cottage property as joint tenant now. So it will automatically in the children's name upon death. There is no need to sell the cottage upon death. If this will avoid capital gain tax? Please advise.

[alexandernobre]

Sell your cottage to your kids for $1. As a home owner you have the right to sell it for whatever price. No taxes then.