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President’s Message
What Does KAPOA Mean to You?
Your executive and I have been asking ourselves what the role of KAPOA is and where should we focus our efforts for the maximum benefit of all.
KAPOA has played a significant role building community on the lake through the regatta, sailing races, corn roasts and other events. KAPOA has reported on water quality and quantity issues and we can thank previous members for the stable levels and clear water that we enjoy today. So much of what many take for granted is due to previous volunteer efforts.
The future could pose more challenges of increased development on the lake, e-coli, aging septic systems, algae blooms and invasive species such as the spiny water flea to name a few. We need a strong association to meet these challenges as we move into our fifth decade as an association.
We need your input and assistance to answer these questions and help implement the great ideas that we generate. I urge you to attend the upcoming Annual Meeting at the Senior’s Center in Barry’s Bay on May 17th from 1pm to 3pm. We need to hear your thoughts and most importantly we need volunteers for the vacant positions on the executive.
I look forward to seeing you at the meeting.
Sean Capstick
KAPOA
President
KAPOA Annual Regatta 2007
The day was a great success and the turnout was amazing. Not only were some of the association founders at the event, the second and third generations were out. It was fantastic to see so many children; I figure they were just a little bit older and more confident to participate this year.
The field for the sailing races was larger than it’s been in a while. We even had a sailboarder participate this year. He won first in his class!
Results:
- Best Female Swimmer – a tie between Kalli Buchanan and Nicole Willmer;
- Best Male Swimmer – Gordon Minty (last year’s winner);
- Overall Competitor- Cole Beecroft;
- Sailing -1st place- William Cahoon.
Thanks to: Bill Cahoon, sailing coordinator; Mary and Susan Bird, Wee Kids games; John Michalecki, photographs; Chris Pyz, generous donations for the BBQ; Carolyn Mallany and Cathy Hoppener – 50/50 ticket sales, Glenelda St. Amand and Ian Doyle, Membership table; Tom Supra and Dianne Stuart, Registration, Tabulation and Set-up; Vic Howarth, Tug-o-war; Sean Capstick, Set-up, Event/Race Organizer; Perry, Brad and Diana Hill and Vince Steepe for BBQ assistance and location preparation; George St. Amand, Dock Set-up, equipment and transportation assistance; Mike Steepe, Finish Lines and Set-up. A special thanks to Deanne Capstick (and Mike Steepe) – for jumping in at the last minute to take care of and run the BBQ area, and Casey Goodale, who helped with set-up/ dock and equipment assistance.
Thanks to all those who assisted in making the day a great one. If I’ve overlooked thanking anyone please accept my apologies.
Volunteers interested in sharing a little bit of their time for this year’s Regatta are encouraged to contact Georgeen at gstamand@rogers.com.
Estate Planning for the Family Cottage
For many of us, our favourite “home away from home”, the family cottage, is the second largest financial investment we will make. There is, however, an important difference between this property and your primary residence! On the last death of you and your spouse there will likely be a significant tax liability.
Tax Considerations
Prior to 1982 it wasn’t important to plan around the eventual sale of a second property since each spouse could own a separate property and designate it as his or her principal residence. Beginning in 1982 this was no longer possible as a couple could only designate one property between them as a principal residence.
In addition to this, beginning in February 1992, the $100,000 capital gains exemption was modified to exclude capital gains on most real property and in February 1994 it was completely eliminated. All of this has had the effect of forcing us to develop ways to pass the cottage on in a tax-efficient manner.
To whom should the property go?
For some there is a greater concern than the future tax liability. The question of whom to leave the property to is of paramount importance. The best solution may not be to leave it equally to all children. The children may not have the same interest in its future use and therefore a cash bequest may be made to those who would not want the property. You may want to have an open and frank discussion.
Life Insurance as a Tool
Life insurance can be a very cost-effective method of providing liquid cash to pay any capital gains and/or equalization payments to other beneficiaries.
Insurance can be purchased on the single owner of the cottage or, on the joint owners. The policy would be a “joint last to die” and because two people are insured, the cost will be less than either could buy individually. The proceeds of the insurance are tax free to the beneficiaries.
The only potential downfall to this solution is that the owner(s) of the cottage must be in reasonably good enough health to qualify for the insurance. Because this may not always be the case, let’s look at another possible solution.
Transfer to a Trust
Consideration could be given to transferring a cottage to an ‘inter-vivos’ (living) trust if there currently exists a small capital gain (the transfer of the cottage asset into the trust triggers capital gains). However, this would effectively transfer any future capital gains to the beneficiaries. A ‘discretionary” trust can be useful because, as mentioned earlier, it may not be clear as to which children may even have an interest in the property. The transfer can take place into this trust and the owners will have unlimited use of the property as well as complete control. This would allow time to decide who the beneficiaries will be. At some later date the property can be rolled out of the trust to the beneficiaries, at the value it was rolled into the trust originally. This will have the effect of deferring tax until the property is sold.
If the parents are over 65 a ‘joint partner’ trust could be used. With these types of newer trusts there is no deemed disposition of property when the cottage is transferred into the trust.
A Word of Caution
There have been suggestions that the cottage can be transferred into joint names with the eventual beneficiaries. While this may have the effect of passing the property by “rights of survival” at death, it has major drawbacks. If this is done there will be a capital gain at the time of transfer and the property would be in “joint control” with all owners, therefore, it would be subject to claim if there were a marriage breakdown or by creditors of any of the owners.
This is clearly not a good solution.
By taking the time to plan today, a great deal of expense and frustration can be avoided in the future.
Reprinted courtesy of L.A. (Bob) Vandenberg, C.A.
Investment Executive, ScotiaMcLeod
Day Tripping to Crooked Slide Park
Crooked Slide Park on Byers Creek is perhaps the most photographed site in the entire Combermere area.
Originally used by lumber baron J.R. Booth and others in the early 1890’s to safely route logs from Brudenell, Wilno and Barry’s Bay into the Madawaska River for their trip down to the Ottawa and eventual transport to Europe, the slide has today become a site for swimmers, photographers, fishermen and those simply wishing to relax and enjoy Mother Nature’s gifts.
When commercially viable timber reserves were exhausted in the early 1900’s, the slide was abandoned and allowed to decay in the forest. Thanks to a government grant, and a local desire to preserve a glimpse of our logging heritage, the slide was rebuilt in 1973 and Crooked Slide Park was born.
By 1994, twenty-five years of Canadian winters, a few million gallons of rushing water, and a little help from vandals, meant the slide was in need of a major face-lift if it was to remain a solid piece of our history.
In 1994, site guardians on the Radcliffe Township Council began reconstruction activities which included the complete reconstruction of the two hundred foot chute and boardwalk, and the adjoining control dam.
Crooked Slide Park is located east of Combermere on the Old Barry’s Bay Road.
