Making the decision to sell or pass down your Vail Valley Area home can be difficult, especially because of the memories you have made in this home. It’s not unusual that people want to keep a beloved home in the family for future generations. Drawing up a clear estate plan can ensure your property is distributed in a way that suits both you and your family. Your Vail Valley area home may be the place where your family and friends come together and maybe you’d like to keep it that way. It’s a good idea to discuss all the details with your children first. You should also talk to your CPA or financial advisor and estate attorney to understand the implication and benefits. When it comes to making the decision if passing down your Vail Valley home is right for you, here are some tips that can help you.
Does Passing Down The Home Make Sense?
Before you commit to the idea of passing down your Vail Valley home to your children, you need to find out if it actually makes sense. Do your children actually want the home? How many children do you have? Are they all interested? Or just one? This is where it can get messy. If you have multiple children there may be challenges on who gets the home. Perhaps they all co-own the home, but only one person gets to live in it. Who will pay the bills for it? Who makes the decisions on the home? There are lots to consider here. What if one child wants to rent it out instead? What about when your children decide to sell the home? How will the profits be split in that case? These questions can all seem overwhelming, but it’s best to consider them now. Of course, you don’t want to cause conflict, especially in your family. So, try to figure out all the details and what they actually want. Take your time to have careful conversations with everyone who will be involved so that everyone is on the same page.
Financial & Legal Considerations
There are also financial and legal considerations for passing down or selling your Vail Valley home to your children. Another option you can consider is placing the property into a trust, along with money to cover its operating costs for at least ten years. This may depend on the financial situation of your children. You should also think about if you would like to transfer your property to trust now, or wait until your death and have the home part of the estate. Placing the property into a trust and transferring ownership can help to avoid estate taxes. Each person and situation is different and knowing which one is right for you and your family is key. Federal and state tax, estate, and gifting law are subject to change even after you set up what is best for you. We suggest talking to a financial advisor or real estate lawyer to get educated on some of these details before making a final decision.
Final Thoughts How Can I Help?
If you have any additional questions when it comes to passing down your Vail Valley home please reach out to me. I want to provide my clients with interesting and up-to-date information so they can make informed decisions. If you think that my expertise and positive attitude might be of service to you don’t hesitate to reach out and contact me.
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Robert Schilling
Coldwell Banker Global Luxury Specialist
Coldwell Banker Distinctive Properties
(970) 390-0705
[email protected]