Cottage Succession Planning

You've worked hard to build and maintain à cottage you are proud of. And you want to ensure it remains in your family for years to come.

YOUR SITUATION

Your cottage is considered à capital asset. Upon death, Revenue Canada automatically assumes that you have rolled over your capital assets to your spouse. If you have no spouse, you are deemed to have disposed of these capital assets at fair market value and Revenue Canada expects its share of taxes owing. If cash isn't available, your family may have to sell the cottage at à 'fire-sale' price to pay these taxes. Therefore, you need to minimize the amount of tax payable.

YOUR STRATEGY

Invest in Flex Account, National Life's universal life insurance and take advantage of its joint-last-to-die option.

Here 's how it works:

Purchase a Flex Account policy. Choose the joint-last-to-die option with proceeds payable at the death of the second spouse, when taxes are due. When the second spouse dies, the life insurance proceeds pay the tax bill and other debts, providing your children or named beneficiary with much needed funds. The cottage remains safe, available for your children or other family members to enjoy for years to come.

Consider this example:
Joe andCaroline are à married couple who are both age 50. The cottage they own has belonged to the family for 65 years, enjoyed by three generations. The projected capital gains tax on the cottage is $100,000. Joe and Caroline realize that after they die, their children cannot afford to pay Revenue Canada and keep the cottage. So, to minimize the tax, they invest in Flex Account. They
pay an annual premium of $570.* Upon death, they will have paid less than one per cent per year of the family's eventual tax bill, saving the cottage in the process.

It's Never Too Late:
It's never too late for life insurance. Many people believe that individuals must be in perfect health to qualify for coverage. À significant benefit of joint-last-to-die insurance is that both individuals do not have to
be healthy to qualify, and unless one of the lives is completely uninsurable, the premiums are significantly less than à comparable single life policy.

Flex Account. A simple way to preserve and protect your vacation property.