Friction can arise when a loved one dies and leaves a vacation home to family members. A family member who lives a long distance away and lacks money to maintain the inherited property often opts to sell his or her portion, which in turn may force a sale of the whole. A way to prevent the sale of inherited property and allow intra-family members to share their home as a vacation spot would be to create a trust, or a limited liability company. Ways to earn money for the trust include renting the property, or purchasing life insurance. A simple operating agreement should also be set up in order to allow members to successfully manage the home.
See Kelly Greene, "Who Gets the Vacation Home?" www.online.wsj.com (Jan. 7, 2012).
Posted by EJ Antezana, Associate Editor, Wealth Strategies Journal
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