Because the memories should outlast the mortgage.
At Duncan Legal, PC, we know a vacation home is more than a piece of property—it’s where lifelong memories are made. It’s the backdrop for swimming lessons at the lake, evenings spent sharing stories on the porch, and summers that bring generations together.
If you’re fortunate enough to own a second home filled with tradition and joy, your goal is likely to pass it down to your loved ones. But doing so successfully takes more than a heartfelt wish—it requires intentional planning.
The Problem with a Simple Inheritance
Leaving your vacation home to your children through a will might seem straightforward—but it can lead to conflict. Heirs may disagree on how the property is used, maintained, or whether it should even be kept. Spouses and future generations often add layers of complexity.
To preserve family harmony and ensure your home remains a blessing rather than a burden, you may want to explore more structured legal options.
1. Family LLC (Limited Liability Company)
A Family LLC allows you to transfer ownership of your vacation home into a legal entity. Each family member becomes a member of the LLC with clearly outlined responsibilities and rights.
With an LLC, you can:
- Define who can use the property and when
- Share financial responsibilities and income fairly
- Set guidelines for selling or transferring ownership interests
- Establish long-term decision-making processes
This structure also offers liability protection and possible tax advantages, especially if the home is occasionally rented out.
2. Trusts: Personalized Planning with Long-Term Benefits
Trusts offer flexibility, control, and protection—making them an excellent choice for passing down a vacation home.
Here are three trust strategies many families are considering in 2025:
Revocable Living Trust
- Allows you to retain control during your lifetime
- Avoids probate after death
Can include subtrusts to handle expenses and usage for beneficiaries
Irrevocable Trust
- May remove the home from your taxable estate or secure a step-up in basis
- Offers protection from creditors
Requires thoughtful planning, as changes are limited - Clearly defines expectations to help avoid future disputes
Qualified Personal Residence Trust (QPRT)
- Reduces gift tax value when transferring the home
- Lets you continue living in or using the home for a set term
- Passes the property to beneficiaries or another trust after the term ends
Planning Insight for 2025: With estate tax exemptions potentially changing, now is the time to protect high-value, meaningful assets like your family’s vacation home.
Thoughtful Planning Today Protects Tomorrow
Without a plan, your home could be tied up in probate, generate unexpected taxes, or become a source of family tension. With the right approach, you can:
- Ensure a smooth transition of ownership
- Minimize tax exposure
- Establish clear, long-lasting guidelines
- Protect both emotional and financial value
Your Legacy Is More Than Just a House
Your vacation home holds the laughter, traditions, and bonds that shape your family story. With a plan in place, those memories can be passed down for generations—bringing comfort and connection long after you’re gone.
Duncan Legal, PC is here to help you create a plan that honors your legacy and gives your loved ones clarity, protection, and peace of mind.
Visit Us: 6436 S Racine Cir, Ste 227, Centennial, CO 80111
Call Us: (303) 394-2358
Learn More: www.duncanlegal.com
Duncan Legal, PC
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