Keeping the Vacation Home in the Family

Most families that own vacations home want to keep it in thefamily. However, some families have difficulty keeping the home after parentspass away. The most common  difficulty is raising money to pay for upkeep. However, there areseveral ways to help families keep their vacation home.

One way is to use a LimitedLiability Corporation that permits the separation of ownership and management.Using a Limited Liability Corporation also provides discounts for tax purposes,and limited liability on accidents on the property. Another option is using aQualified Personal Residence Trust, which can be used to shrink estate, butallows the family to still use the vacation home for a few more years. Finally,the home could also be kept in a revocable trust to collect money for upkeepdistribution.

See Evin E. Wick, Esq., Passing On a Vacation Home Poses Challenges, Wealth Strategies, Sep. 17, 2013.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.