Vacation Homes and Cabins

A vacation or weekend home or cabin can be great fun and a source of memories for many families. Unfortunately, a lake cabin can also be a source of financial problems and family disputes if its disposition is not well planned.
There are many options to transfer a vacation home to the younger generation. Alternatives include an outright gift, keeping a life estate for mom and dad, putting it into a trust, or even using a limited liability company. There are tax issues as well as ownership and control issues that must be resolved. The most important issue is that everyone in the family have a clear understanding of what is going to happen to this place of fond memories once mom and dad either pass away or are no longer able to care for the vacation home. Checkett & Pauly recommends that the family have an honest and frank discussion about these issues and then make an appointment with an estate planning attorney to discuss the many alternatives available to keep a vacation home as a place of fun, and not expensive litigation.