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As you open up the vacation home for the season, reflect back on all the great memories and the stories that your grandchildren are carrying with them to their neighborhoods. The beach, hikes and bonfires will last with them forever.  These memories are enough to make you want to preserve this home through the generations, and let the memories turn into legacy. 

Your children, however, are probably having a discussion with a little different flavor. They are wondering how their older brother, who hasn’t held a steady job in 10 years is going to pay for his share of the maintenance.  Your daughter in Scottsdale is wondering why she has to pay for the maintenance of the home all year round when she only plans to be there for two weeks in July. And your middle daughter, who lives nearby both you and the vacation home, is concerned that all of the maintenance and seasonal responsibilities will fall upon her.

Don’t let these realities playing out in the background deter you from doing what is important to you.  If you are determined to turn the memories into legacies, try these simple steps to accomplish your vision for a family vacation home that endures the generations, economies and tax law changes.

Consider placing the title of the home in a trust.  In the trust, you can work with a good estate planning attorney to draft the provisions inside the trust giving you the greatest chance of accomplishing your objectives. If you simply leave the home to your children directly in equal shares, you are inviting a host of potential problems from divorce and financial problems to disagreements about how to use or maintain the home.

The trust needs a trustee, who is responsible for carrying out the directions spelled out in the trust.  The trustee can also be one of the beneficiaries.  Be very specific about the duties and powers of the trustees and give careful thought to the methodology for selecting successor trustees.

Amongst the factors that you may like to spell out in the trust document are the rules regarding usage of the home. A fair and equitable method that doesn’t give all the “prime time” such as school vacation and holiday time to any one child is best. The trust also needs to spell out the financial obligations of the beneficiaries and the consequences for any one beneficiary’s inability to meet their fair share of the obligation.

This all sounds simple when you consider your three children who all get along so well.  But add a spouse, a few grandchildren each and all of a sudden you have a dozen or more stake holders with an interest in the terms of the trust.

For this reason, consider endowing, or funding the trust with enough cash to maintain the home in perpetuity.  For some, this may not be possible.  You may look into a life insurance policy to fund this trust. If you can’t afford the insurance or the endowment, understand that your vision may be beautiful, but not practical.

John P. Napolitano CFP®, CPA is CEO of U. S. Wealth Management in Braintree, MA.  Visit JohnPNapolitano on Facebook or uswealthboston.com.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. John Napolitano is a registered principal with and securities offered through LPL Financial. Member FINRA/SIPC.  Investment advice offered through US Financial Adviosrs and separate entity from LPL Financial. He can be reached at 781-849-9200.

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