law py
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Who We Are
    • About Our Firm
    • Attorney and Staff Profiles
    • About The American Academy
    • Advantages of Working With Our Firm
    • Speaker Connection
  • How We Help
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Minor Children & Young Adult Planning
    • Pet Planning
    • Remarriage and Blended Families
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Elder Law
    • Coping With Alzheimer’s
    • Hospice Care
    • Veteran’s Benefits
  • Resources
    • DocuBank
    • Elder Law Resources
      • Elder Law Reports
    • Estate Planning Resources
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Estate Planning FAQ’s
      • Frequently Asked Questions for Families Without an Estate Plan
      • Incapacity Planning FAQs
      • Legacy Wealth Planning FAQ’s
      • LGBTQ Estate Planning FAQ’s
      • Medicaid Planning FAQs
      • Probate FAQ’s
      • Trust Administration & Probate FAQ’s
      • Wills and Trusts FAQs
    • LGBTQ Resources
    • Special Needs Resources
    • Newsletters
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
  • Contact Us
  • Attend a Free Webinar

Vitt Law Offices, PLC

Helping Other People Preserve Their Wealth

Attend A Free Webinar

Call Now
(434) 971-3025

header-logo
Home » Proper Planning Protects Your Vacation Home

Proper Planning Protects Your Vacation Home

March 26, 2014 by Vitt Law

Compliments of Our Law Firm,
Written By: The American Academy of Estate Planning Attorneys

A vacation home is a special place for a family. You buy a beach house or a cabin at the lake with visions of the long, lazy summer days and holidays you’ll spend with your children…and eventually your grandchildren. You dream of the memories you’ll make, and you look forward to passing the home on to your children and grandchildren so that they can do the same.

Sadly, without a well-drafted estate plan, these hopes can turn to disappointment.

For instance, if you leave behind a Will, your estate will be subject to probate. Probate is the court process of changing the title from a deceased person to the rightful beneficiaries. Depending upon the state, it may be expensive or time consuming. If the property is located in another state, it would necessitate yet another proceeding in that other state, called ancillary probate. This is a separate probate proceeding, complete with its own timetable, fees, and paperwork that must be completed in the state where the vacation property is located before the property can be distributed to the beneficiaries named in your Will. Probate, including ancillary probate, can be avoided by establishing a revocable trust that then includes your vacation property. This strategy can save your loved ones time, money, and hassle, because property held by a trust does not have to go through probate.

Even if you avoid probate, how can you ensure that your vacation home will remain in your family – and that it will not become a source of conflict for your children and grandchildren? Consider a common scenario:
Your daughter is financially stable and looks forward to using the property on a regular basis. Your son, however, has creditors to worry about and sees the cash value of your vacation home as a means for paying off his debt. In this situation, leaving the property to your children in equal shares invites conflict.

If your son, already in debt, decides that he cannot afford the maintenance and taxes on the property, he could decide to go to court to force its sale. This might leave him with enough money to pay his creditors, but it would be the end of your dream, leaving your daughter and your grandchildren without a family vacation home full of cherished memories.

One way around this problem might be to leave the vacation home to your daughter while leaving other assets of equivalent value to your son. Even if both of your children want to keep, maintain, and use the vacation home – and you should ask them about their wishes – it is wise to include specific terms for its use in your estate plan.

Another option is, at your death, to have your revocable trust keep the vacation home and sufficient funds for its upkeep in a continuing trust. That way, your son in the example above, could not force the sale of the vacation home to pay off his creditors.

An experienced estate planning attorney can help you explore all your options for keeping your vacation home in the family, protecting it from threats like creditors and divorce, and for including it in a plan to minimize any estate or gift taxes you may owe. With a solid plan, your vacation home can continue to be a source of peace, relaxation, and fond family memories for years to come.

Primary Sidebar

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
Address
Texting Permission

SUBSCRIBE TO OUR E-NEWSLETTER

Address
Texting Permission

Where We Are

Vitt Law Offices, PLC
880-A Rio East Court
Charlottesville, VA 22901
Phone: (434) 971-3025

Map

OFFICE HOURS

Monday8:30 AM – 6:00 PM
Tuesday8:30 AM – 6:00 PM
Wednesday8:30 AM – 6:00 PM
Thursday8:30 AM – 6:00 PM
FridayClosed

Footer

  • About The Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us
  • Facebook
  • LinkedIn
  • Twitter
Logo

Vitt Law Offices, PLC

© 2023 American Academy of Esate Planning Attorneys, Inc.

© 2023 American Academy of Esate Planning Attorneys, Inc.