Setting out what will happen in the future with the real estate they have is among the things an elderly individual can do in their estate plan. Now, each particular type of real estate has its own unique aspects and circumstances, and thus can raise its own particular issues when it comes to estate planning.
One type of real estate some seniors own is a vacation home. Many different things could have impacts on what a person would want to have happen with such a property when they pass away or are no longer able to use it themselves. Such things include:
- How much the individual wants the property to remain in the family.
- What sentimental attachments different people have to the property.
- The costs associated with the upkeep of the property.
- How much the family actually wants the property.
- What the property can be used for.
- The desires and needs of one’s loved ones.
So, the goals a person might have for estate planning related to a vacation home can vary considerably.
Now, there are quite a few different ways a vacation property could be handled in an estate plan. Some examples include:
- A person leaving the property to one loved one or multiple loved ones in their will.
- A person transferring the property to one loved one or multiple loved ones during their lifetime.
- A person putting the property into a trust, with the trust having various rules regarding how the property will be handled in the future and who will get to benefit from it.
- A person selling the property and using their estate plan to distribute the proceeds from the sale to loved ones.
The various estate planning methods for dealing with a vacation property differ considerably from one another in what sorts of goals they are well-suited to achieve and what the major concerns/issues are when it comes to getting them set up. So, when determining how to deal with a vacation home they own in their estate plan, a senior may want to have an elder law attorney review the overall situation regarding the property and give them guidance on what sorts of approaches would be best-suited for achieving their particular wishes/goals regarding the property.
Source: Money, “4 Questions to Ask Before Passing Down the Vacation Home to Your Kids,” Tracy Craig, July 18, 2016