{"id":630499,"date":"2026-09-20T13:30:51","date_gmt":"2026-09-20T13:30:51","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/630499\/"},"modified":"2026-09-20T13:30:51","modified_gmt":"2026-09-20T13:30:51","slug":"how-do-we-set-up-a-trust-to-leave-our-vacation-home-to-our-kids","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/630499\/","title":{"rendered":"How do we set up a trust to leave our vacation home to our kids?"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Illustration by The Globe and Mail<\/p>\n

We want to leave our vacation home to our children when we die. How do we go about incorporating a property into a corporation and setting up a trust?<\/p>\n

We asked Derek Hambly, estate and trust consultant with Scotiatrust, to answer this one.<\/p>\n

Between 8 per cent and 11 per cent of Canadians own a vacation home, according to Statistics Canada. And, with the great transfer of intergenerational wealth well under way, the question of how to strategically pass it on comes up more often in financial planning.<\/p>\n

\u201cWanting to keep a vacation home in the family is a common goal, particularly when the property carries years or even decades of memories,\u201d Mr. Hambly said. \u201cWhile it can be tempting to focus immediately on legal structures such as trusts or corporations, the bigger question is often what role you want the property to play for future generations and whether a trust or corporation will help achieve that goal.\u201d<\/p>\n

From a practical standpoint, putting a vacation property into a trust or corporation involves establishing the legal structure and transferring ownership of the property into it, he said. It is, however, important to note that trusts and corporations serve different purposes and are not the right solution for every family. <\/p>\n

How should \u2018longevity planning\u2019 factor into my financial plan?<\/a><\/p>\n

\u201cBecause transferring ownership can trigger tax consequences and affect how the property is treated in the future, obtaining legal and tax advice before taking any steps is essential,\u201d Mr. Hambly advised.<\/p>\n

Families often consider trusts and corporations because they can provide structure around how a vacation property will be owned and managed once it passes to the next generation. Before choosing either option, Mr. Hambly suggested that it is worth assessing whether your children can realistically manage the property together. For example, will they agree on who pays for repairs, how regular expenses are shared or whether the property should eventually be sold? <\/p>\n

\u201cEven in close families, differing expectations can create tension, and those conversations are often just as important as the legal structure itself,\u201d he said.<\/p>\n

Fortunately, a trust or corporation can help establish a framework for addressing those issues. Depending on the arrangement, it can provide clarity around decision-making, cost-sharing and succession, while helping ensure your wishes for the property continue after your death. Mr. Hambly added that these structures may also offer tax, estate-planning and probate benefits in certain circumstances \u2013 another reason families choose to explore them.<\/p>\n

\u201cThat said, trusts and corporations are not perfect solutions,\u201d he said. <\/p>\n

What financial steps should I take to protect my family in case something happens to me?<\/a><\/p>\n

According to Mr. Hambly, most types of trusts and all corporations cannot claim the principal residence exemption (which allows you to shelter any capital gains when you sell it), and both structures come with continuing administration, annual tax filings and potentially complex tax considerations. <\/p>\n

He suggested that there are also other ways to transfer a vacation property to the next generation, whether through your will, a lifetime transfer or other estate-planning strategies.<\/p>\n

Ultimately, Mr. Hambly said that there is no single best way to keep a vacation property in the family and such a decision is dependent on many factors. \u201cThe right approach depends on your family\u2019s relationships, your tax situation, your desire for control and your long-term goals,\u201d he said. <\/p>\n

\u201cA trust or corporation may be part of the solution, but before implementing either structure, it is important to understand the legal and tax implications and determine whether it is the best fit for your family\u2019s circumstances.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Illustration by The Globe and Mail We want to leave our vacation home…\n","protected":false},"author":2,"featured_media":630500,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[72,176,61,60,174,175,4925],"class_list":["post-630499","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-ie","tag-ireland","tag-personal-finance","tag-personalfinance","tag-r-fp"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/630499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=630499"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/630499\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/630500"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=630499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=630499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=630499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}