Consider a Florida Trust or LLC When Leaving a Vacation Home to Heirs
Posted on Jan 31, 2012
If you have a vacation home, you may want to consider setting up a trust or an LLC (Limited Liability Company) for intrafamily transfers. They are also useful for as blueprints for sharing expenses. After all, a major issue will be paying the costs of maintaining the home – utility bills, insurance, and taxes - when the prior owner dies. According to a Wall Street Journal article, some other factors that you may want to consider include:
how well family members get along;
how far they live from the vacation home;
what will happen if children who inherit the home get married; and
who will utilize the property.
If you want the home to stay in your family, understand that lack of financial resources and distance could lead to the house being sold.
If you leave the home to your family in a trust, you can use life insurance to fund the trust. This would pave the way for a trustee to manage the vacation home and insurance proceeds would cover expenses. If an heir seeks to sell, trust money could be utilized to buy out that heir.
If your children get along and estate taxes aren’t an issue, you may want to opt for an LLC and a maintenance fund, along with an operating agreement. A Fort Meyers estate planning attorney can review your situation and explain your options in greater detail.
Help from a Fort Myers Estate Planning Attorney is Just a Phone Call Away
Fort Myers estate planning attorney Matthew A. Linde understands firsthand the importance of careful estate planning and the complexities of financial legal matters, such as probate, tax litigation and guardianship. For help with your estate planning concerns, contact our Fort Myers office to schedule a one-on-one meeting with a professional who can answer your questions – 239-939-7100 or 888-643-6514.