When estate planning, some assets are more complicated to plan for than others. One of the more complicated assets to plan for is a vacation home. A recent article discusses two ways in which a person can plan for his or her vacation home, (1) through a limited liability company, and (2) through a qualified personal residence trust.
Limited Liability Company
If you have several children that you would like to transfer your vacation home to in equal shares, consider using a Limited Liability Company to do so. One benefit of transferring a vacation home through an LLC is that the current owners of the vacation home can maintain some control over the property, while also laying the foundation for a smooth transition of ownership. Additionally, putting a vacation home in an LLC protects individual family members from any liability that may stem from the home.
Qualified Personal Residence Trust
Another way to transfer your vacation home to your children is through a Qualified Personal Residence Trust (“QPRT”). This is a good option for those who no are no longer able to get much use out of their vacation home. In this arrangement, a person or couple turns the home over to a trust. After the trust has expired, ownership transfers to the trust’s beneficiaries.
For assistance in planning for your vacation home, contact us at (626) 696-3145.
