Tips for Managing Family Vacation Homes

Some families may purchase a summer or vacation home as aquiet retreat meant to fix family dysfunction. However, too often these family vacation homes can cause familyfriction.  Here are some ways to keep thefamily cabin a private retreat instead of an isolated battleground:

1. Have honest conservations with yourchildren.  Knowing their true feelingsabout a vacation home will make it easier to decide what to do with it afteryou’re gone or whether or not to keep it around.
2. Have a master plan.  Whether the vacation home will be maintainedby all close relatives, be given to one or two individuals, or kept as a sitefor family reunions, there should be a master plan in place to serve as thebasis for all future decisions concerning the property.
3. Find the best method for transfer.  Hire an accountant or attorney to minimizetaxes and handle maintenance/insurance issues.
4. Set specific rules.  Develop agreed-upon rules with a LLC ortrust agreement that defines the rights and obligations of its users andowners.

See Wendy S.Goffe, The Family Cabin: Private Retreator Isolated Battleground?, Forbes, Aug. 12, 2013.