With summer fast approaching, Kelly Phillips Erb dedicated one of her recent Forbes Taxgirl columns to the tax considerations of buying a vacation property. This is very timely for our blog, because along with tax benefits and considerations, owning a vacation home or second home also has estate planning considerations.
Being fortunate enough to have a summer home to escape to is wonderful. I believe vacations should be enjoyed with our family, friends, pets and other loved ones. Returning time and again to a vacation home where you can build memories is quite special. But the fact is, this very property may bring happiness now and then be an object of contention in the future.
For example, suppose the owner or owners of the home have several children but fail to specify to whom the vacation home should be bequeathed to? Suppose the owners forget to include the property in their will(s) at all? And what about the location of the property, specifically if it is in a different state from where the owners reside?
These are all issues that an experienced estate planning attorney can resolve. In general terms, your attorney can place the home in trust, establish beneficiaries and heirs for the property, and arrange for the home’s smooth legal transfer after the death of the owner(s). The important thing, once you have decided to purchase a vacation property, is to touch base with your estate planning attorney as well. Then, the necessary updates and additions to your existing estate plan can get underway too.
Maybe at this moment you are reading this blog on the sundeck or patio of your vacation place. That’s a wonderful thought. But even if you are only on a break at work, my message is the same. If you have questions regarding property, your will, or any estate planning related matter, please give me a call at your convenience, and we can set up a meeting. I have extensive experience in crafting comprehensive estate plans that meet all your needs and expectations. To schedule a consultation, please contact us at 818.956.9200.
