While inheriting a vacation home sounds like a dream come true, for many siblings it becomes one long nightmare. Sometimes siblings disagree on how to maintain a property, or even if they should keep it at all. Other times disagreements over scheduling or sentimental items cause rifts between them that break the family apart.
Families who decide to work together and be transparent with each other can go on to enjoy the property for a lifetime. Here are some tips on how to make your shared vacation home a dream come true.
Buyout uninterested parties
If a sibling decides not to participate in the vacation home for any reason, buying out that sibling’s share now is a good idea. The executor of the will may be able to reallocate other inheritable assets to make all siblings whole. If that is not possible, the remaining siblings can structure a buyout using their own money or by taking a loan on the property.
Sell and share the profits
If no one wants the property, or if buying out uninterested siblings is financially undesirable, you may all choose to sell the property and share the profits equally.
Write a formal agreement
Once everyone has decided that they would like to keep the home, the first step should be to write a formal agreement. Some issues the agreement should address include:
- Usage rules like schedules, guest limits and privileges
- Establish an expense account for routine payments regarding the property
- Expenses, including costs allocations and who is responsible for payments
- Appoint or hire a property manager to make arrangements regarding maintenance and repairs
Letting uninterested siblings opt out and creating a written agreement can help your vacation home become a family retreat for a long time.