This time of year, many of us are heading out of town to spend time at our cabins making memories. While we want to focus on enjoying what short summers we have here in Canada, there are some things to be mindful of from an estate planning perspective.

Secondary properties, such as cabins, are often what estate planners refer to as legacy assets because they are often intended to be passed from one generation to the next. With this goal in mind, there are several strategies the experts at MacMillan Estate Planning can recommend to achieve this.

Family trusts are created during the owner’s lifetime and are commonly used to hold the property outside of a personal name. There are several benefits of using this kind of strategy; it protects the value of the cabin from any third-party claims against you or your family, but you can also implement a set of rules and guidelines to make clear your intentions to future generations.

If the cabin is owned by a family trust and one of your children were to become involved in a significant milestone such as matrimonial proceedings, for example, the cabin would not be relevant matrimonial property and, as such, would not be at risk of being lost to an in-law.

A family trust isn’t limited to the property in isolation – many families will provide a sum of money with the intention that it will be invested and applied towards things like property taxes, maintenance and improvements to make things that much easier for the family and will ensure that the upkeep costs do not provide an impediment when retaining the cabin.

Alternatively, a suitable trust could be created within a person’s will if they were inclined to maintain complete personal ownership of the cabin during their lifetime. While this works, it is important to be mindful of the fact that when it is held under a personal name, it is exposed to third-party risk.

If you decide to have a trust hold for your secondary property, there are some important considerations to be aware of.

Our team at MacMillan Estate Planning can help you create a strategy to navigate these important conversations and determine which option is best for you and your family as you develop your legacy plan. Our team is dedicated to knowing our clients on a deeper, more personal level and act as true stewards of our clients’ legacies and significance. To learn more or to talk to an estate planning professional, contact us today.