How a California LLC Can Help You Pass On a Vacation Home

9:03 pm Asset Protection, Estate Planning

beach house row 150x150 How a California LLC Can Help You Pass On a Vacation HomeIf you have a vacation home in California or any other part of the country, using an LLC (limited liability company) to pass it along to future generations may be one of the best things you can do to ensure your heirs will continue to enjoy that home.

A Wall Street Journal article details some of the considerations in creating a succession plan for your property:

Who wants to inherit?  If you have more than one child, you will need to figure out how many of your heirs are interested in inheriting your vacation home.

Make a plan.  Each family has its own unique set of circumstances.  If you have one child, you can usually bequeath it to him or her in your will, or give it as a gift while you are still alive.  But if there is more than one person involved, you should consider forming an LLC or a trust that will own the home, with an operating agreement that spells out the rules for joint ownership.

An LLC works best for adult heirs, since it can operate indefinitely and provides each member with an equal say in how the property is managed.  An Orange County estate planning attorney can assist you with determining the best option for your family.

Consider taxes.  When you are putting together your vacation home succession plan, you will also need to take gift and estate taxes into consideration, so make this a part of your estate planning discussion as well.

Contact us today for individualized planning strategies to meet your unique needs.

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