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Holiday Homes

For who and for how long?

Owners of holidays homes should give thought to the various situations which could cause problems.

Family holiday homes are a beloved arrangement often owned by Mum and Dad or other close family relative/s. In the case of the holiday home being owned by Mum and Dad it is a lovely way to connect with the growing family and provide time together including grandchildren etc. But what happens when Mum and Dad get up in years, are not as able to get to the holiday home, and eventually pass on? Problems can begin to occur when one or other member/s of the family use the holiday home more than another family member; does not care for or maintain the property as much as other family members; does not contribute to the upkeep and costs of the holiday home? This situation over time can cause family arguments and rifts.

Legacy use and ongoing use of the property for the long term can be shared more fairly to avoid family rifts and fallouts. Several options could be considered.

One option here in particular involves a trust situation being created which requires any family user to pay rent for use of the holiday house. Additionally, others outside the family could be allowed to rent the property. This then adds to and creates a cash flow to build up funds for the maintenance, ownership and running costs of the property.

Parents and family group owners of holiday homes should give thought to the various situations which could cause problems. Increased and/or increasing real estate prices make it harder for individual family members to purchase their own holiday home which is likely to continue over time. It is necessary to consider and document legally, how the current owners wish the family holiday home to be treated and used going forward as part of longterm plans and Estate Planning arrangements. Planning is important to avoid arguments and family disharmony but instead continue the trend of happy, fun, family gatherings for holidays in a holiday setting and should be considered and documented legally.