Heading to the cottage? So are your clients. So learn how to help them protect their treasured assets from taxes.

Today’s economy means clients will have a tougher time selling: 59% of Ontarians who had planned to buy a cottage have delayed making a purchase due to continuing economic uncertainty, according to the 2012 Recreational Property Report by Royal LePage. So make sure they pass it on to family correctly.

Here are some tips:

Bequeathing the family cottage

Many of your existing clients probably own cottage properties and the numbers are likely to grow. These clients, particularly older baby boomer clients, will want to be informed about the basic tax issues affecting the transfer of these assets.

Read Part II for a case study on joint ownership.

Quick tips for cottage planning

“Cottages generate the most acute estate-planning problems for clients [with] cottages and family businesses. It’s not the technical problems that seem to cause the rift in families, it’s the emotional ones.” – Sandy Cardy

Legacy of the family cottage

Succession planning is a critical component of overall estate planning, and intentions for the cottage need to be aligned with retirement income and other investments. There are also a number of unique legal requirements that must be considered.

Help clients keep their cottages

For many cottage owners, values have increased so significantly that their children may be forced to sell it just to pay capital gains and probate taxes.

Forget a cottage; some clients want to own a secluded hideaway

And for your clients who are wildly rich, read this story. It’ll teach you all you need to know about buying a private island.

Finally, here’s a tune you can play on the dock. RIP, Chuck.