Wednesday, August 17, 2005

Passing On the Family Vacation Home

Few families successfully transfer ownership of a cabin or vacation property by accident. But, some families do accomplish this Herculean feat with a great deal of advanced multi-generational planning, often with mechanisms to adjust the plan as circumstances and needs change. In a recent article, Wendy S. Goffe describes various considerations and techniques that should be considered.

In regard to methods of transfer, these include outright gifts, transfers to qualified personal residence trusts, use of other trusts, family LLC’s, and sales to family members. Once the property has been transferred to the next generation, the family will need to put into place a mechanism to manage the property, resolve conflicts, and facilitate maintenance of the property. The article provides a useful list of issues that should be addressed in an agreement dealing with these issues.

Planning Strategies for Keeping the Vacation Home in the Family, Estate Planning Journal, Sep 2005, Estate Planning Journal (WG&L).
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