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Saving the Family Home
The
family's second home, normally the property of the parents and the
holiday retreat for the rest of the family should have a proper
"succession plan" in place that spells out all the rules to keep the
holiday home in the family over multiple generations.
The
succession plan should make provision for shared ownership in the future
and the transfer of the title to that of a legal entity, such as a
corporation, limited partnership or a trust.
The entity
provides a legal framework in which the parents can script how the
family shared home is to be used, shared and passed on to future
generations, a holiday schedule, contribution to expenses, who can be a
"permissible" owner, whether a surviving spouse can inherit or use the
place, and whether the property can be changed, mortgaged or sold.
This
property will have to be "manager-managed." This means that the family
designates one or more of its members to perform such functions as
paying the bills, coordinating schedules, and hiring contractors to
service and maintain the home as stated in an operating agreement. The
manager may have as much, or little, authority as the members wish, as
provided in the agreement.
What's important is to ensure that memorable times
continue with the least amount of aggravation. If you have a family
getaway, take time to review your master plan.
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