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

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

If you have a vacation home in Florida or any other part of the country, using a 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 and succeeding generations will enjoy that home. Here are some considerations:

Who wants it. 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 form an LLC or a trust that will own the home, with an operating agreement that spells out the rules for joint ownership.

In the operating agreement, you should specify how the property will be used. You will probably want to give each heir an equal right to the property rather than divvying up actual shares. This is to prevent one heir from cashing out his or her share and putting ownership or use of the property in jeopardy for future generations.

In addition, heirs may wish to name someone within the family to manage the property. This person would be responsible for coordinating the use of the property among all the heirs as well as making key administrative decisions.

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. A real estate attorney can assist you with establishing an LLC for this purpose.

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 it’s a good idea to consult an accountant.

The attorneys at Jurado & Farshchian, P.L. combine their knowledge and experience in Florida real estate and business law to represent the interests of Florida real estate owners and investors. Contact one of our experienced Florida real estate attorneys at (305) 921-0440, or email us at info@jflawfirm.com.

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