If you own a vacation home, the estate planning process is extremely important. There are many unique considerations to weave into your estate planning strategy and these should all be done under the guidance of a knowledgeable estate planning lawyer. Many people who own a vacation home anticipate that it will at least pass on to the next generation.
Of course, you will want to have conversations with your loved ones about whether this falls in line with their interpretation and goals for the vacation home. This can be a great starting point for you to determine what you want to happen to the property.
In the event that you intend the vacation home to stay a part of the family for multiple generations, you will want to structure the gift as part of your estate and you may also wish to create a written agreement for your heirs to minimize the possibility of conflicts. That agreement can be signed by all of those beneficiaries as part of your gifting process and can include your wishes and rules for what happens with the operation and the use of the party.
These can answer important questions, such as who will pay what expenses, who makes legal decisions regarding the property, can an interest in the home be sold, what insurance coverage should be maintained, and who can use the vacation home and when. While doing this proactive planning process for your estate planning, you can greatly increase your chances of your loved ones truly and enjoying the vacation home rather than arguing with one another over it.
Ready to talk about your vacation home in your California estate plan? Contact our Pasadena area lawyers now.