Real estate and, in particular, vacation homes often have significant emotional attachment for family members, which creates unique estate planning challenges. As families make plans to leave such properties to the next generation, this planning can become a flashpoint for tension and strife. For these reasons, it is important for owners of a family vacation home to be realistic in their assessments of family dynamics and the practicalities of having the next generation own and manage such an asset.
Does the next generation really want to keep the property in the family? This important question is often overlooked in the planning process. Parents who cherish the property want to keep it in the family, so the next generation can enjoy it as they have. They are predisposed to leaving it to them in some way, even when it may not be practical to do so. Family dynamics, such as sibling rivalries, difficult spouses and disinterest on the part of some family members in retaining