Vacation Home Planning

Thorough estate planning is especially critical when a Family Vacation Home (e.g., cabin, Florida condo, Door County house, etc.) is an asset of your estate.  Any form of real estate that will be held within your family for more than one generation needs the attention of an estate planning attorney who has significant experience in Vacation Home Planning.

Thorough Vacation Home Planning will AVOID:

• ugly conficts between family members;
• a partition lawsuit brought by a family member who wants to "cash out" their ownership interest;
• a disorderly transition from one generation to the next;
• scheduling conflicts;
• conflicts regarding upkeep;
• fights over use of funds in the capital account;
• unnecessary estate taxes; and
• many more potential problems that could create family disharmony.

Thorough Vacation Home Planning will ACHIEVE: 

• a plan for who should make decisions regarding the property;
• a plan for the payment of expenses related to the upkeep of the property;
• a plan for how an ownership interest should be valued if a family member wants to sell their ownership interest;
• who may purchase an ownership interest from a selling family member, if such a sale is allowed;
• a plan for resolving conflicts between family members without the involvement of the courts;
• a plan for how to structure the eventual sale of the property, and how sale proceeds will be distributed; and
• many more benefits, including family harmony.

The centerpiece of a Vacation Home Plan is either a Vacation Home Trust, Vacation Home Partnership Agreement, Vacation Home Tenants-in-Common Agreement, or Vacation Home LLC Operating Agreement (i.e., Limited Liability Company). 

In addition to addressing the issues stated above, following are some of the issues that a well-prepared Vacation Home Plan will cover:

• identification of the parties involved with the plan;  
• maintaining the "books" for the plan;
• capital contributions to the plan;
• vacation home endowment (i.e., capital account);
• rights of the parties involved with the plan;
• decision making authority;
• voting on major decisions; 
• withdrawal from the plan by a family member;
• transfer of ownership of a family member's interest;
• put and call options for sales of plan interests;
• scheduling use of the vacation home;
• dissolution of the plan and distribution of sale proceeds; and
• many, many more miscellaneous provisions.

Establishing a thorough Vacation Home Plan is an advanced form of estate planning.  Not all "estate planning" lawyers are capable of setting up and implementing Vacation Home Plans.  The Illinois, Wisconsin, Minnesota and Florida estate planning lawyer of Sylvester Law Firm has significant experience in preparing Vacation Home Plans.  We welcome you to call us at (847) 251 - 2999 to discuss how a Vacation Home Plan will help you and your family.