You are free to use this article as is, or you can edit it. No need to give ROL Advisor credit for it. It’s our gift to you.
To download this article: CLICK HERE
[Excerpt] What will be the ownership structure?
The simplest solution — passing your vacation home down to one child whom you trust to manage and share the property responsibly — might not be the best solution for most families. If the beneficiary is an only child, a host of legal and fiscal responsibilities will fall on him or her alone. And if you intend for siblings, cousins, and older relatives to keep enjoying the property, they might feel excluded and resentful. Add in the value of the house and those feelings could snowball from hurt to litigious.
In addition to splitting ownership percentages between multiple heirs, you and your team of professional advisors should consider forming a trust or limited liability company (LLC) that will formally own and manage the property. These vehicles might be able to reduce the tax burden on individual heirs. And, with proper planning and accounting, some of the maintenance costs associated with keeping up your vacation house could be tax deductible. Your heirs might even be able to earn some passive income by renting the house when it’s not in use.
Click here to learn more about ROL Advisor’s digital discovery tools, then sign up for a 7-day trial to become a better Life Centered Financial Planner, and finally, schedule a demo.