Over the years, we’ve had conversations with many clients who share a similar goal: “We want the vacation home to stay in the family.” It’s a wonderful goal but making it a reality often takes more planning than families realize.
For many, the vacation home is much more than a piece of real estate. It’s where children and grandchildren gather year after year, family traditions are created, and some of life’s most meaningful memories are made. Whether it’s a beach house, lake home, mountain retreat, or another special place, these properties often become part of a family’s story.
Let’s consider a familiar scenario.
Tom and Susan spent more than 30 years creating memories at their beach house. As they got older, they often talked about how much they hoped their three children would continue enjoying the home long after they were gone.
After Tom and Susan passed away, however, their children realized they each had a different vision for what “keeping the house in the family” actually meant.
One wanted to preserve it exactly as it was. Another wanted to renovate it. The third lived across the country and questioned whether keeping the home-made financial sense. Then came the practical questions. Who would pay for repairs? How would property taxes, insurance, and maintenance be shared? How would holiday schedules be determined? What if someone eventually wanted to sell?
While Tom and Susan are fictional, the situation is not.
A thoughtfully designed estate plan can transfer ownership of a vacation home, but it doesn’t automatically answer the questions that come with shared ownership. Families still need to decide how expenses will be paid, how major decisions will be made, and how disagreements will be handled if circumstances change.
Depending on your family’s goals and circumstances, you may consider discussing with an estate planning attorney whether placing the property in a trust or using another ownership structure is appropriate. These strategies can help establish expectations for managing the property and provide a framework for future decision making.
Just as important are the conversations that happen before those documents are signed. Parents often spend time deciding who will inherit the home but not enough time discussing what that responsibility will involve. Having those conversations early gives family members an opportunity to share their expectations, ask questions, and work through potential challenges before they become difficult decisions.
If your vacation home is an important part of your family’s legacy, it may be helpful to review whether your current estate plan addresses the realities of shared ownership. While your estate planning attorney prepares the legal documents, your FineMark advisor can help you think through the financial considerations, facilitate family conversations, and coordinate with your attorney and other trusted professionals. Together, that collaborative approach can help protect not only your family’s assets, but also the relationships that make them meaningful.
