Places like Arizona and Florida are hot spots for retirees, and it’s no wonder since the weather is good all year long and the cost of living is generally lower in these states Many people who retire full-time or who spend the winters in these states often buy a vacation or second home in one of the many areas like, Phoenix, Flagstaff, Sierra Vista, Boca Raton, Fort Lauderdale, and Miami.

The purchase of a vacation or second home is an important event when it comes to estate planning. If you acquire vacation property in Arizona, Florida, or another state, here are some things to consider before you being planning your estate for when you pass on.

Do you want the property to stay in the family?
If so, who should you leave it to? Should you leave it to more than one person? Will this cause problems?
Will your children see the home as a burden and promptly sell it?
Could you leave the property to one person and equal value in cash and other assets to another?
Should you sell the property before you pass away?
What if you pass away suddenly and unexpectedly?

Create an Estate Plan that Includes Your Second Home

Once you’ve answered all of these questions (and more) you should consider who your beneficiaries will be when it comes to your vacation property through the use of a trust. A trust names the beneficiaries as well as terms of use and even dates when the heirs may use the property. The trust can be as specific as you want it to to be. A property manager can oversee the vacation home’s schedule which makes things run much smoother after you are gone.

The trust is also created as a fund to pay for the property management, taxes, insurance, mortgage, legal fees, and upkeep. Typically, people use a professional estate planning attorney to avoid any mistakes and to avoid leaving out anything important. Using a professional is often a welcome relief to family members who then can simply enjoy the vacation home while the legal team takes care of financial responsibilities.

Guidelines for Selling Your Vacation Property

No matter who you leave your vacation home to, you should include clear guidelines for selling the property. For example, if you leave the property to two children and they decide to sell there should be a plan in your estate plan that takes this into account and allows for the sale of the property with an equal division among the heirs.

 

For your estate plan needs, contact Dana Law Group today.

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