Friday, September 27, 2013
Most families that own vacations home want to keep it in the family. However, some families have difficulty keeping the home after parents pass away. The most common difficulty is raising money to pay for upkeep. However, there are several ways to help families keep their vacation home.
One way is to use a Limited Liability 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 a Qualified Personal Residence Trust, which can be used to shrink estate, but allows 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 upkeep distribution.
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.