August 8, 2016

If you are thinking about passing on that amazing vacation home to your loved ones and you want to keep it in the family for future generations to use, taking the time to plan now can be extremely beneficial. First of all, you need to consider who actually wants the property. A second home you have held in sentimental value for a long time might lead you to think that your children are automatically interested in having a stake.

However, you need to make sure that family members are actually interested in owning it. Some of the practical issues for your family members could include whether or not their income can contribute to the taxes, upkeep, and other costs. Others might not be able to travel to visit the home on a regular basis and therefore don’t see the benefit.

Your children might also prefer a more liquid asset. In the event that you have identified family members who are interested in owning the vacation property, the next step is determining the right form of ownership. Although the simplest method is to leave that home outright to your children in your will or to the family members who wish to inherit it, this could add additional complexities and disagreements for your heirs.

One option is to pass down your vacation home through a trust which would help to minimize some of the concerns associated with outright ownership. You would appoint a trustee to be in charge of all decisions associated with the home and then your heirs would become the beneficiaries of that trust.