Should You Update Your Estate Plan After Buying Out-of-State Property?

Why You Should Put a Vacation Home in a Trust

The better option would be to establish a trust and deed the property into the name of the trust. By doing this, your summer home will no longer be in your name and will therefore avoid probate in both states, avoiding court fees and the time delay associated with bringing the out-of-state proceeding.

Very often, the vacation home is a special place with special memories. This may result in multiple family members wanting to inherit the property and keep it in the family. In these cases more than any others, it is advisable to make it clear who will own the property and who will continue to be responsible for the costs including utilities, real property taxes, capital improvements, etc. It may be appropriate to leave the house in a trust with a sum of money meant for continued support of the property, while in other cases there may be one family member that is given the right of first refusal to purchase the property from the other beneficiaries.

Purchasing a New Property Comes With Crucial Estate Planning Considerations

Leaving instructions in your estate planning documents on how a seasonal property will continue to be used and/or owned after your death, can prevent friction amongst family members and ensure your investment can be enjoyed for decades to come. If you plan on investing in a seasonal property, you should consult your estate planning attorney to update your plan to suit your family’s goals.

By Britt Burner, Esq. & Erin Cullen

Britt Burner, Esq. is a Managing Partner at Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Elder Law. Erin Cullen is a graduate of the Maurice A. Dean School of Law at Hofstra University. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan, and East Hampton.