Estate Planning & Vacation Homes | Estate Attorney Wake Forest
Raise your hand if you're currently sitting on the beach, thinking about how you might be able to buy that cozy beach bungalow down the street so that your family can enjoy peaceful moments on the beach every summer. Whether you prefer the beach or the mountains, vacation homes are often a place where families make memories, but what does that have to do with Estate Planning or Estate Attorney Wake Forest?
When we typically think about estate planning, vacation homes aren’t exactly the first thing that comes to mind. That said, vacation homes can cause quite a headache and become a round of dispute when heirs disagree about how to manage them.
Therefore, if you’re getting ready to purchase a new summer home OR you're getting close to packing up your summer retreat for the season, it might be a good idea to sit down and consider how you might pass this treasured asset down to the next generation; particularly if you are nearing retirement, have multiple children with spouses, or are unsure of what your children’s wishes are for the future.
Estate Planning Tips for Your Vacation Home
CREATE A MASTER PLAN
Before you do anything else, make sure that you are having honest conversations about whether there’s an interest in keeping the vacation home long-term. Sometimes finances, desires, and other issues might not make it feasible for your children to keep the home after you pass. Even once the property is paid off, there are often taxes and maintenance expenses that are associated with ownership, that your family may not be interested in maintaining.
On the other hand, if your children are willing to keep the vacation home, your next step should be to create a master plan. Document every detail of the home’s long-term future, including how it will be handed down to the next generation. Be sure to include future developmental plans for the property as well.
It’s important once you get the master plan in place to visit with an estate planning lawyer. Eldreth Law Firm, PLLC in Wake Forest can sit down with you and go over your plan and assist in memorializing the plan.
"Hand Down" the Property
Vacation properties may be handed down in various ways, including a limited liability company or irrevocable trust, even while the current owners are still alive. Children can inherit the home with “training wheels” to see how the situation goes.
That said, there are benefits and drawbacks to each method of handing down the property. As such, it’s best to consult your estate attorney Wake Forst on which course is best for your family.
Estate Attorney Wake Forest | An Estate Plan for Your Vacation Home
Estate attorney in Wake Forest, Eldreth Law Firm PC are able to help you and your family plan for the future. If you’d like to schedule a consultation before creating a master plan contact us! We would be happy to sit down with you to iron out details and then meet back with the entire family to share the plan after it has been created.
Also, be sure to visit back with us for our next post as we continue with our tips for transferring a vacation home within an estate plan.
