Inheriting the family cabin in

My question is: Canadian-specific
QUESTION: My parents own a cabin in BC which has increased in value
substantially since they purchased it.  My father is concerned that, when he
and my mother pass, the taxes will overwheml my sisters and I, and feel the
best thing to do is sell it now to avoid the problem.  It is not their
principle residence.  Is there a way that we can keep this treasure in our
family without being handed a big tax bill?  Thanks, and keep up the great
work!
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david ingram replies:
1	You could freeze the tax bill by transferring the property to the kidlets
now.
2	You could start a tax account now where everyone involve kicks in $25 or
$50 a month to have the money to pay the tax in the future
3.	You could buy a joint or last survivor life insurance policy on your
parents so that upon their demise, you can leave the life insurance to the
estate to pay the taxes.  The kids should pay the premiums on the life
insurance policy.
or 4	Wait until they pass, figure out the tax and put a mortgage on the
property to pay the tax and then the inheritors pay the mortgage.
For instance, if they (your parents) bought it for $25,000 and today it is
worth $225,000, the taxable part would be $100,000 which might add $35,000
to their final tax return.  This is not a bad price for a $225,000 vacation
home.
A mortgage for $35,000 would have payments of less than $300 a month and
surely, the inheritors could manage that if they wanted to keep it in the
family.
If it has gone to $425,000, there would be a $70 to 80,000 mortgage
necessary.
5.	Start that savings account now and when it gets to that time, you can to
it half cash and half mortgage.
-------
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