Vacations and Holidays Are the Perfect Time for Families to Talk About Estate Planning
If you are spending the upcoming holiday with older family members, this is actually a great opportunity to talk about planning with them. While there are few “perfect” times to talk with parents about their estate plan, the relaxed times you spend together on vacation or downtime during the holidays can be one of them. You have the benefit of having everyone together sitting down in one place. So take advantage of that!
Here are some tips on how to bring up this critical conversation:
Find a good place to start.
One of the best ways to ease your parents into a financial discussion is to bring up your own. Tell your parents that you were looking into your own estate plan and wondering if they had already executed their own. You can let them know that you have learned that the different types of plans require very different levels of effort from the executor and cost from...
If you are fortunate enough to have a family vacation home, you know the emotional value it holds for every member of your family. Many cherished family memories are rooted in a special place, which makes it important for current and future generations to preserve it properly.
A trust is often a good choice when the current owners – parents or grandparents – are concerned that joint ownership could lead to disagreements or that maintenance costs may prove too great for the next generation to manage.
Instead of dividing ownership, you can establish a trust to hold title of the property and fund an endowment to handle maintenance expenses. Minnesota is famous (in the legal world) for its cabin trusts! In addition, to avoid paying custodial fees to the trust, you can set up a limited liability company to hold the endowment within the trust.
Once the LLC is registered in the state where the vacation property is located and the trust is created,...