Estate Planning for Your Vacation Home

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If you are considering purchasing a family vacation home, and want the home to stay in your family even after you pass away, you need to take into consideration estate planning issues and laws before you purchase your vacation home. Here are three estate planning issues you need to take into considering while you go through the process of purchasing a family vacation home. Out Of State Vacation Homes One of the most important things estate planning issues you need to think about when planning to purchase a vacation home is the location of the home. If you purchase a home in a different state than where you primarily live, the person who executes your will may have to go through a second additional probate hearing regarding the property. When you own property outside of your primary resident state or your domiciliary state, the other state where your property is held is referred to as …show more content…

Each country has their own laws and rules about property inheritance, which can vary from those in the United States. Before you purchase a vacation home in another country, you need to look into their inheritance laws and make sure that they line up with your long-term vision for your vacation home. It is also important to keep in mind that just because your vacation home is located in another country, it is still subject to U.S. estate taxes; your family would have to pay those taxes upon inheriting the property. Additionally, depending on where in the world the home was located, they may also have to pay either estate or inheritance taxes associated with that property as well. Make sure that any estate plans you draw up take these taxes into consideration; you would not want your family to lose out on inheriting your vacation home due to tax

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