Description
Learn practical estate planning techniques for vacation homes.
In planning your clients estate, you need to be aware that a vacation home is not like other assets. It may not be enough to say, to my children or their descendants in equal shares, per stirpes. This creates a tenancy in common with multiple, fractional, transferable shares. There may be issues in coordinating the use of the space, or in paying for maintenance and repairs and property taxes. One or another of the children might have issues with creditors or with a divorced spouse. Any one of the cotenants could force a partition sale, probably at a distressed price. But if you put the house in a trust, who should be the trustee, and what should be the limits on his or her discretion? What are the potential tax consequences of using a trust or a limited liability company to hold title? This topic will explore these and related questions and discuss practical planning techniques that can help keep the vacation home in your clients family for generations to come.
Date: 2023-11-06 Start Time: 1:00 PM ET End Time: 2:05 PM ET
Learning Objectives
* You will be able to explain what will happen with a vacation home in the absence of planning.
* You will be able to describe and explain the advantages and disadvantages of using different mechanisms to transfer a family vacation home from one generation to the next.
* You will be able to identify appropriate vehicles for handling the transfer, in light of the particular facts of your situation.
* You will be able to anticipate and address possible income, transfer, andor property tax issues arising from the transfer.