Ever thought of how to plan for what happens to your investment property after you pass away?

Whether it is the family cottage, second residence, or investment property, your estate plan needs attention. In Canada, many cottages and other vacation properties have increased significantly in value over the years and may now be worth substantially more than their purchase price, depending on where and when they were bought. This presents a potential tax liability with the recently proposed increase to the portion of capital gains included in income. As a result, this may trigger a significant capital gains tax liability for your estate when you pass away and possibly force your loved ones to sell the cottage to pay the tax. This means the cottage would no longer stay in the family.

To help you address these challenges, we recommend creating a financial plan; never too early to start, especially when it comes to preserving and leaving a legacy for your family and favourite charities, or controlling, managing, and determining who receives your assets upon your passing.

By taking advantage of CIBC Wood Gundy’s investment advisory expertise, we can set you on the right course for wealth management and protection while keeping the needs of your family’s future at heart.

What is the estate planning strategy for protecting your investment property from being sold, securing your heirs, and funding estimated capital gains taxes? With the help of Estate Planning Specialists, CIBC Wood Gundy Senior Wealth Advisor Sugi Kumaresan and his team recommend Life Insurance.

Our estate planning specialist highlight the following:

• Be mindful of misconceptions! We often overestimate the amount and the cost of such insurance.
• The ideal candidate is someone who wants to pass a cottage or property on to the next generation, who would like to plan for their tax liability, and who could use some extra retirement income.
• Life Insurance solutions require pre-planning ideally when you’re in your 40s, 50s, or 60s (latest). At 70-plus years of age, you may be uninsurable or the premiums may be prohibitively expensive.
• Life insurance guarantees a death benefit, the payment of a pre-determined amount of money on your death and is paid tax-free to the beneficiaries chosen by you.

Determining which type of insurance you need (i.e., term or permanent) can be challenging. But CIBC Wood Gundy Investment Advisor Sugi Kumaresan and his estate planning partners can provide the attention you deserve to determine the type of insurance that will provide peace of mind and future security to those who depend on you.

For more information on this topic, please contact Sugi Kumaresan, CFP, CIM | Senior Wealth Advisor | CIBC Private Wealth — Wood Gundy 600-181 Bay St, Toronto, Ontario M5J 2T3 Tel: 416-229-5866 sugithan.kumaresan@cibc.ca | @cibc

“CIBC Private Wealth” consists of services provided by CIBC and certain of its subsidiaries through CIBC Private Banking; CIBC Private Investment Counsel, a division of CIBC Asset Management Inc. (“CAM”); CIBC Trust Corporation; and CIBC Wood Gundy, a division of CIBC World Markets Inc. (“WMI”). CIBC Private Banking provides solutions from CIBC Investor Services Inc. (“ISI”), CAM and credit products. CIBC Private Wealth services are available to qualified individuals. Insurance services are only available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are only available through CIBC Wood Gundy Financial Services (Quebec) Inc. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc. This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change. CIBC and CIBC World Markets Inc., their affiliates, directors, officers and employees may buy, sell, or hold a position in securities of a company mentioned herein, its affiliates or subsidiaries, and may also perform financial advisory services, investment banking or other services for, or have lending or other credit relationships with the same. CIBC World Markets Inc. and its representatives will receive sales commissions and/or a spread between bid and ask prices if you purchase, sell or hold the securities referred to above. © CIBC World Markets Inc. 2024. Sugi Kumaresan is an Investment Advisor with CIBC Wood Gundy in Toronto. The views of Sugi Kumaresan do not necessarily reflect those of CIBC World Markets Inc. Clients are advised to seek advice regarding their particular circumstances from their personal tax and legal advisors. If you are currently a CIBC Wood Gundy client, please contact your Investment Advisor.