Thanksgiving long weekend signals a bittersweet goodbye to the dog days of sun and leisure. For many Canadians, closing the family vacation property, whether that be a cottage, chalet, cabin, or beach house, carries an emotional weight. This is their happy place, the one constant in life’s ever-changing seasons. It’s where generations trod the same forested paths, kids learn how to swim, and cousins grow up like siblings.
The smell of pine, cool dips in the lake, starry skies unmarred by city lights, paddleboarding at sunrise, fishing off the dock, family board games on rainy days, reading paperbacks in a hammock, ice cream runs, the creak of old floorboards and worn deck chairs, s’mores and storytelling by the campfire...Year after year, these moments compound into lifelong memories.
Whether you're considering maintenance, renovations, or even the future of the cottage itself, this seasonal close is an opportunity to reflect and plan for what's ahead.
Maintenance AND Upkeep: Ensure the Property is in Good Shape
- Before locking up for the season, do a thorough property inspection: check the roof, plumbing, electrical systems, HVAC, and any signs of water damage or pests.
- Addressing small issues now can prevent major costly repairs in the spring. Check out our annual Cottage Closing Checklist to stay organized and preserve the long-term value of your cottage.
Assessing Usage: Is It Time to Let Go?
- As families grow and change, so do their needs, and unfortunately sometimes that means reassessing the role of the cottage. If it's no longer being used as often, or if family members have moved away or lost interest, it may be time to consider selling or reworking ownership structures (e.g., shared ownership or transferring it to the next generation).
- Occasional use can also open the door to rental income, but it’s important to weigh the benefits against the responsibilities of property management and tax implications. Taking a step back to evaluate whether the cottage still fits into your family’s long-term goals can help ensure it remains a blessing and not a burden. Are all family members equally invested in keeping the cottage in the family?
Succession Planning: Death and Taxes
- Examine the tax implications of owning a cottage, both from a capital gains perspective (if the property is sold) and in terms of ongoing property taxes, utilities, and maintenance costs. With the federal Capital Gains Inclusion Rate (CGIR) increasing to 66.67% in 2026 (excluding the first $250,000 for individuals), families with long-held appreciated properties could face significant tax bills.
- Tools like a family trust can help preserve the cottage for future generations while minimizing tax exposure.
Family Meeting: Starting the Conversation
- The vacation home may be the emotional glue that holds families together, but without honest conversations, it can just as easily become a point of conflict. And there almost certainly will be conflict. Don’t wait for illness, divorce, disputes, or death to trigger action. Start early by gathering the family to talk about usage, responsibilities, financial contributions, and shared expectations. What are you trying to preserve? Do others share your vision?
- Consider bringing in a neutral third party to help guide these talks, and be patient: it may take more than one conversation to find common ground.
- Creating a family charter or written agreement (including house rules around cleaning, storage, and restocking supplies) can help preserve both the property and the relationships tied to it, keeping the cottage a place of connection, not contention.
Questions to Ponder:
- How will you handle scheduling conflicts, especially during peak times like long weekends or summer holidays?
- How will you ensure fairness if some children use it more frequently than others? Or in the case of blended families, marriage or divorce?
- Who will be responsible for the ongoing costs, and how will these be split? If a family member is unable or unwilling to contribute, how will this be addressed without resentment?
- How will ownership be structured for succession to avoid family conflict (e.g., jointly through a family trust or as individual shares)?
- What happens if one family member wants to sell their portion of the cottage? What if the other owners can’t afford to buy them out?
- Who will make key decisions about its upkeep and use after you’re gone? Is this management burden fair? Are these plans legally documented?
BOTTOM LINE
You don’t need to have all the answers today, but it’s important to start asking the right questions. SANDSTONE is here to provide clarity on how the family cottage best fits into your overall wealth plan. Our experienced team helps to facilitate these conversations and can connect you with trusted tax and estate professionals to support a thoughtful, long-term approach.