How to Deal With Estate Issues on a Family Vacation Home

There are several issues that go along with passing on a family vacation home, and the solutions can be complicated if you're not prepared to deal with them in advance. These issues can include maintenance of the home, making sure it is kept in the family, estate tax issues and asset protection. You worked hard to get that cabin on the lake or that beach house, so plan now to be sure that your grandkids can still enjoy their summers there in years to come.

Things You'll Need

• Attorney
• Trust

Instructions

Estate Issues on a Vacation Home

1. Examine the options and decide which is best for your situation. You will likely be dealing with a trust, however there are several kinds of trusts to choose from including revocable and irrevocable trusts.

2. Decide how you want the house to be managed and maintained and include this in the trust. This will help delegate the responsibilities.

3. Get your family involved in the estate now to help them remain interested in it after you are gone.

Tips & Warnings

• The trust will protect the vacation home from the creditors of the beneficiaries as well as in situations such as divorced spouses.

• Plan ahead to get the family involved early and discuss your plans for the vacation home with them.

• Do not just will the house to one of your children with the instruction that they share. Their idea of sharing might not live up to what you intended.