Keeping the vacation home in the family
Spring is here and with summer on the horizon, many of you will plan family getaways to rental properties, hotels, and vacation homes. Think of all the fun times together at the beach, walking in the woods, or laughing at the dinner table – that place where family and friends can come together with few worries.
Maybe you have a vacation home that was passed on or maybe you are looking for one. Either way, you need to ask if owning one makes sense for you? Evaluate your needs, long-term goals, and pros and cons of owning a second home. Maybe you want to add to your real estate portfolio as an investment property. Perhaps you want a place for your family to create new experiences with your children or grandchildren.
Consider the cost for everyone to get there and how often they could go. Be prepared for all costs for you and all family members. Consider the responsibility of buying and or maintaining a second property, utilities, and filling it with furniture. A trusted real estate agent will work to understand your situation, wishes and needs, and should have experience in the market.
Maybe you have already thought through all of this and have that special getaway property or had a property passed down to you. Your decision on how to keep it in the family, whether it is a new place or has been passed on, should include planning for your later years. Will you want to leave your second home to your children to enjoy and create new memories? What if one child may want the property more than another? An LLC or Trust is recommended, with clear instructions on how the home is to be maintained, occupied, and paid for. It’s a wonderful family jewel, but could be a disaster if not properly planned for.
Your realtor can help you find a wonderful place for you to enjoy if you do not already have this special getaway. Your estate planning attorney will get the legal entity set up so you have the most favorable tax consequences and keep family harmony. Now all you have to do is make sweet memories there to last for generations.
Look for The Property Sisters monthly segment in Stroll Palos Park, or contact:
Bridget Gricus (708) 814-6253, bridgetgricus@gmail.com
Eileen Kerlin Walsh (708) 448-5169, Eileen@KerlinWalshLaw.com
