When planning an estate, many people do not consider how a vacation home factors into their estate plan. A recent article discusses several estate planning concerns for people who own vacation homes.
The most important consideration when planning for a vacation home is, whose name is on the title. If two spouses own a vacation home jointly, survivorship rights will take over. In most states, these survivorship rights allow the property to pass directly to the surviving spouse at the time of the deceased spouse’s death. If you would like your vacation property to pass to your children, you must hold it in your own name.
Some people purchase vacation properties with co-investors. In this case, it is important to determine whether you own the property with or without a right of survivorship or as tenants in common. If you own the property with a right of survivorship, the remaining investors will inherit your share automatically upon your death. If you own the property as tenants in common, however, you can select whomever you wish to inherit your share after your death.
To make these determinations, look at the deed to your vacation property. For assistance in determining the ownership of your vacation home and planning accordingly, contact us at (626) 696-3145.
