The Citizen, 2007-05-03, Page 42PAGE 42. THE CITIZEN, THURSDAY, MAY 3, 2007.Ah, the family cottage – how doyou hand it down to the nextgeneration, keep peace among yourchildren, and manage to fund a hugetax bill?
“As the boomers get older, this
dilemma is more and more
common,” explains chartered
accountant Karen Slezak of Toronto.
“The escalating value of cottages
means they are now significant
assets. Unlike other assets, they
evoke strong personal attachments,
memories and emotions – so making
a decision can be very complex.”
“Start the discussion process early
and explore all the options openly,”
advises chartered accountant Sandra
Bussey, of Waterloo. “Cottages are
key elements in estate planning.
Unfortunately there is no cookie-
cutter approach to deal with them –
it depends on many different issues,
including the number of childrenand the value of the property relativeto the estate.”If your family is grown and youfind that maintaining the cottage by
yourself isn’t so much fun anymore,
what should you consider when
deciding the future of your cottage?
“Find out what each family member
wants and who is interested in
having the cottage,” says Bussey.
“Many families are scattered these
days, and perhaps only one child is
in a position to use the cottage. If it
is a significant portion of the estate,
make sure there are other assets, if it
is important to you that all your
children are treated equally.
“Most importantly, collect all the
information about the cottage and its
history. This helps determine the
potential capital gain – which can be
a significant factor in your decision-
making, depending on the size ofyour estate. When was the cottagepurchased? What improvementshave been made? Is there a principalresidence exemption? Even with the
principal residence exemption that
may reduce the capital gains tax, it
can still be a huge amount,” explains
Bussey.
According to Slezak, making
these decisions takes you to the next
stage of your planning process –
where to go in the future. “Look
ahead and determine what the tax
bill will be down the road, in five to
20 years time. While you can’t
predict how the tax rates will
change, you can lock in a number,
considering inflation.
“Are there other assets in the
estate to fund this tax bill, and can
they be readily converted into cash?
If there are not enough resources,
consider other options, such astaking out life insurance to cover thetax liability,” suggests Slezak.“You can also set up a family trust.If you’re buying a cottage right now,
put it in a trust right at the very
beginning instead of buying it
directly yourself. Then the trust
owns the property as an investment,
and the capital gains tax is passed
down one generation.”
It takes co-operation to manage a
family cottage. To help avoid
conflict, draw up an agreement
covering such issues as repairs,
maintenance, and allocating
weekends.
Both Slezak and Bussey agree –
plan ahead and consult your CA,
who will help you arrive at the
decision that’s best for your family.
– Brought to you by The Institute
of Chartered Accountants
of Ontario.
The provincial government’s
target of limiting kindergarten-to-
Grade 2 class sizes to 20 pupils is the
main driver behind an $853,800
addition to Listowel Eastdale Public
School.
Trustees of the Avon Maitland
District School Board approved the
tendering process for the project at a
regular meeting Tuesday, April 24.
JP Commercial Contractors
submitted the successful bid of
$1,249,740. The majority of that
amount covers the addition of one
classroom, staff washrooms, a new
library and a new computer
laboratory.
This will allow administrators to
bring Listowel Eastdale in line with
the province’s primary class size
objective, which makes it eligible for
specific funding.
The balance of the total tender will
be funded through the Education
Ministry’s Good Places to Learn
initiative, and will be used to
complete upgrades in the existing
building. This will include new
windows, exterior doors, classroom
millwork, primary electrical
upgrades, existing washrooms and
site sewer upgrades.
Also approved at the April 24
meeting were tendering process for
mechanical and electrical upgrades
at Stratford Central Secondary
School (SCSS) and Exeter Public
School.
The SCSS project, with a tendered
amount of $457,700 submitted by
Turner Plumbing and Heating, will
consist of upgrades to the existing
heating and ventilation system and
lighting replacement.
And the Exeter Public project,
with Lannin Electric submitting the
low bid of $208,098, will include a
new transformer, secondary switch
gear, upgrades to the electrical panel
and lighting.
Both projects will be funded
through Good Places to Learn.
Beat the
temptation.
TOLL-FREE
1-877-513-5333
What to do with the family cottage
Avon Maitland trustees approve
tendering for Eastdale addition
Award
Brendan Boven of the Blyth
area, took home one of the
Huron County 4-H Chinchilla
Club’s many awards at their
11th annual show and auction
last Saturday in Walton. The
club had judges on hand to
grade all of the animals and
place them accordingly in
preparation for their eventual
buyers. (Shawn Loughlin photo)
Buffet Dinner
5 pm - 7 pm
$15.95
BrBrunch & Dinner Bufunch & Dinner Buf fetfet
Brunch
11 am - 2 pm
$12.95
www.wgcc.on.ca
Wingham
Golf & Curling Club
Jamestown Rd., Wingham
519-357-2179
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15% off all women’s clothing & golf gloves
Sale runs May 9-13
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9 holes $14 ~ 18 holes $20
Driving Range Open $5/basket
Golf lessons available from golf professional
Dave Meriam. Great place to come for all
your team, work and family parties.
Call the golf club for details.
Call for
reservations
& details
Blyth Rd., Auburn 519-526-7759
NOW LICENSED
UNDER LIQUOR LICENCE ACT
OF ONTARIO
Stickers Family Restaurant
Monday - 6:30 - 4:00;
Tuesday & Wednesday 6:30 - 8:00;
Thursday, Friday & Saturday 6:30 - 9:00;
Sunday 9:00 - 7:00
Saturday,
May 5
Wing Night
5 pm - Closing
Friday Smorg. ~ 5 pm - 8 pm
Sunday Smorg. ~ 4 - 7 pm
The Brubachers of Ethel
Restaurant & Bakery
Real Home Cooking
Try our Cinnamon Buns
519-887-8659
Mon. - Fri. 7-6:30;
Sat. 8-6:30, Sunday Closed
BRUNCH
2 Sittings 11 a.m. & 1:30 p.m.
$13.99 - Adults
$7.99 - preschool to 10
Free - under preschool
SATURDAY NIGHT SPECIAL - Prime Rib
SUNDAY BRUNCH - 11 a.m. - 2 p.m
Hours:Mon. - Sun.11 a.m. - 8 pm.
272 Huron St. Clinton 519-482-1119
BUFFET
2 Sittings 4:30 pm. & 6:00 pm.
$15.99 - Adults
$8.99 - preschool to 10
Free - under preschool
Reservations Required
May 13May 13
By Stew Slater
Special to The Citizen
To find out more about offering high school students work experience contact the
Foundation for Enriching Education Perth Huron
at 519-527-0111 ext 231 or visit www.foundationforeducation.on.ca
Training students today creates a pool of
skilled workers for tomorrow
Sponsored by the Ontario Learning Partnership Group and the Provincial Partnership Council
Supported by The Ontario Ministry of Education and The Ontario Ministry of Training, Colleges and Universities
BUY? SELL? TRY CLASSIFIED
This recipe
has been tested
by me in my
home. It’s easy
family food
that teenagers
and parents
will enjoy.
COOKED SALAD
DRESSING
2 tbsp sugar
1 tsp. dry mustard
1 tbsp flour
pinch of salt
2 egg yolks
3/4 cup milk
1/4 cup vinegar
3 tbsp butter
few grains cayenne pepper
In top of a double boiler, over
simmering water, mix together
sugar, mustard, flour, salt. Add the
milk and beaten yolks. Stir in
vinegar slowly. Stir and cook until
smoothly thickened. Add butter
and cayenne pepper.
Store in a jar in the refrigerator.
Country Fare
By Patricia Ham,
Auburn School House