Your family's vacation home is more than just property

Too often, when we put together our estate plan, we're so preoccupied with making sure that our families are provided for financially that we fail to consider the true value of our possessions. This can be especially true for those of us who own vacation homes.

Whether your vacation home is a peaceful retreat in the mountains, a rural fishing lodge, or a condo at the beach, the value it holds for your family is more than just financial. Through the years, it becomes a home away from home, and a place where special memories and bonds are formed. For many families, the emotional and sentimental value attached to a vacation home comes to outweigh the monetary worth of the property.

This was true of Jim and Margaret's lakeside cabin. They bought it when their kids were little, and both their son Alan, and their daughter, Kate, learned to swim and fish there. The family spent most weekends there, and the kids loved bringing their friends along for sleepovers. Everyone thought the cabin would stay in the family for generations, and Jim and Margaret planned for this by leaving it in their Trust, with Alan and Kate each getting 1/2 the value of the cabin.

The problems began when Jim and Margaret passed away. The Trust said that Alan and Kate each got half the value of the cabin, but what did this mean? Which one of them was supposed to pay the property taxes? What about paying for utilities and upkeep? Alan had recently lost his job and was struggling to support his own family, let alone foot the bills for repairs and taxes on a vacation home. Kate, on the other hand, didn't think it was fair for her to pay all the expenses on the cabin while Alan and his family got to use it for free. And neither one could agree on a fair schedule for who got to use the cabin on which holidays. The fights started, and kept escalating until finally, Alan and Kate decided it would be best just to sell the cabin.

This heartbreaking ending could have been avoided with thoughtful estate planning. From the outset, everyone agreed that Alan and Kate both wanted to keep and use the cabin. Instead of simply stating that each would get a 1/2 share of the cabin, Jim and Margaret's trust could have specified a shared use arrangement for the cabin. The financial concerns about taxes, utilities and upkeep could also have been addressed, and funds could have been set aside to take care of those expenses.

If the situation had been different; for example, if Alan had wanted the cabin and Kate had not, then life insurance or other assets could have been allocated to Kate, and the cabin could have been set aside for Alan. A qualified estate planning attorney can help you take a careful look at your family's whole picture, and help you uncover all the options for keeping your precious belongings in the family while avoiding conflict among your loved ones.

Larry Deason is a Yuma attorney who is a member of the American Academy of Estate Planning Attorneys. For more information about his public seminars, call 783-4466 or visit his website at www.deasonlaw.com.