Just when it seems like you thought of everything when it comes to creating your Anaheim estate plan, you remember (or purchase) your vacation home. These properties are wonderful for giving you the opportunity to have a home away from home, share memories with friends and family, and possibly generate income when you are not otherwise using it. With these benefits, however, comes significant responsibility.
As you create your estate plan, consider carefully these five tips including your vacation home:
- Think about how you want to hold title for the vacation home. Will your estate planning goals best be served by having the property in your name, in the name of the trust, in the name of an LLC, or some other individual or entity?
- If your vacation home is in another state, think about how this will affect probate proceedings if you pass away. Fortunately, your estate plan can be crafted to avoid the need to open up an ancillary probate proceeding in the state where the property exists.
- Think about how you can reduce your personal liability if the vacation home is rented out to others. For example, you could create a family limited partnership or a limited liability company to hold title to the property as part of your overall estate plan.
- If your estate is large and you need to minimize potential estate taxes, think about whether the vacation home is a good asset to use as part of an overall gifting strategy.
- Think about the issues that can arise when ownership of a vacation home is designed to pass on to different generations. Who will be responsible for the upkeep and expenses of the home? What happens if one party wants to sell the property? Fortunately, these issues can be addressed as part of your estate plan.
Planning for a vacation home is not the only task that needs careful consideration as you create your Anaheim estate plan. Learn how we have helped countless other individuals and families create the estate plan that works for them by viewing our testimonials.