It can be complicated to leave vacation property to your children. You don’t want them to lose this property, and they probably have a lot of great memories of going there, but it’s different than a family home.
There are a lot of things to consider when setting up this estate plan or talking to your children about what they can expect in the future. Below are just a few examples to get the conversation started.
Do they all want it?
If you have multiple children, one thing to ask is simply if they would all like to be co-owners or not. You may find that some children would like to keep it and some are not interested. Understanding what they expect and what they’re hoping for can help you design the estate plan in a way that works.
Do they understand the expenses?
A vacation property can also come with a lot of expenses. It’s one thing for an adult child to think it sounds fun to own a family cabin, but it’s quite another to consider paying the property taxes, paying for maintenance and upkeep, and everything else. Make sure they understand what it means to inherit that property.
How do they make decisions?
When multiple people inherit the same property, they need to be able to make decisions about everything from repairs to an eventual sale if they decide to move on from that property. It’s best for them to have some sort of agreement in place for how they can make these decisions.
You can see how complicated this can get, so take the time to look into all of your legal options if you’re involved at any stage in this process.