For many families along Lake Michigan, the lake house isn’t simply a piece of real estate. It’s where family history is made.
It’s where grandchildren catch their first fish. Where summer dinners stretch long after sunset. Where birthdays, holidays, and family traditions become lasting memories. For some families, these homes have been gathering places for decades, serving as the backdrop for life’s most meaningful moments.
Yet while families spend years creating memories in these special places, many spend very little time discussing what happens when the property passes to the next generation.
Without a plan, a cherished family retreat can become a source of confusion, disagreement, or financial strain. With thoughtful planning, however, it can continue serving as a gathering place for generations to come.
Start the Conversation Early
One of the biggest mistakes families make is assuming everyone shares the same vision for the future of the property.
Parents often believe their children will naturally want to keep the lake house. While that may be true, each family member may have different priorities, financial circumstances, and levels of attachment to the property. One child may envision spending every summer there, while another may live hundreds of miles away and visit only occasionally.
Before making legal or financial decisions, it’s important to have honest conversations about expectations. Questions such as who wants the property, how expenses will be shared, and how decisions will be made can help prevent misunderstandings down the road.
While these conversations aren’t always easy, they are often far easier than asking family members to sort through these issues during an already emotional time.
Consider the True Cost of Ownership
Owning a lake house involves much more than making mortgage payments or paying property taxes.
As waterfront property values continue to rise, so too can the financial and tax considerations associated with transferring these homes to the next generation.
Maintenance, repairs, insurance, utilities, landscaping, dock upkeep, and renovations all require ongoing investment. As properties age, these costs can increase significantly, and future generations may not always be prepared for the responsibility.
When planning for the future, families should discuss not only who wants the property, but also whether they have the financial ability to maintain it. In some cases, establishing a dedicated fund to support future expenses can help ease the burden and improve the likelihood that the property remains in the family for years to come.
Equal Isn’t Always Fair
Many parents strive to divide their estate equally among children. While that goal comes from a place of love and fairness, a family vacation home can complicate the equation.
While one child may hope to preserve the property for future generations, another may prefer receiving other assets instead. In some situations, leaving the lake house to one heir and balancing the estate through other means may be more practical than splitting ownership equally among multiple family members.
Every family is different. The key is creating a plan that reflects your family’s unique circumstances and values rather than relying on a one-size-fits-all approach.
Create a Structure for Success
Families who successfully transfer vacation properties across generations often have clear expectations in place before ownership changes hands.
Whether through trusts, limited liability companies, or other planning strategies, establishing guidelines can help answer important questions before disagreements arise:
- How will major repairs be approved?
- How will usage be scheduled?
- How will annual expenses be divided?
- What happens if one owner wants to sell their interest?
The goal isn’t to create complexity. It’s to create clarity.
By establishing a framework in advance, families can spend less time navigating conflict and more time enjoying the property together.
A Legacy Beyond the Property
At its heart, preserving a family lake house isn’t simply about real estate.
It’s about preserving traditions, relationships, and experiences that have shaped a family over time. It’s about ensuring future generations have the opportunity to gather in the same place, tell the same stories, and create new memories of their own.
The most successful plans combine legal and financial preparation with open family communication. When both are in place, families give themselves the best opportunity to protect not only a treasured property, but also the connections that make it meaningful.
As you think about the future of your family’s retreat, consider asking a few important questions:
- Do our children want to keep the property?
- Can they comfortably afford its ongoing upkeep?
- What traditions do we hope continue for future generations?
- Have we clearly communicated our wishes?
- Have we documented how future ownership decisions should be made?
- Does our estate plan support those wishes?
The goal isn’t simply to pass down a property. It’s to pass down the memories, traditions, and connections that make it special.
After all, the greatest legacy of a family retreat may not be the home itself. It may be the memories it helps create for generations to come.
How We Help Families Preserve Their Legacy
Planning for a family vacation home often involves more than deciding who inherits the property. Questions about ownership, expenses, fairness among heirs, and future responsibilities can become increasingly complex over time. At Waverly Advisors, we work with families to help coordinate financial, tax, and estate planning considerations while encouraging productive family conversations that can support long-term stewardship of the property. Because the true legacy isn’t just the home itself; it’s the generations of memories it helps create.
If you have questions regarding the POWER OF PLANNING or the content in this article or would like to discuss your particular financial or investment situation, don’t hesitate to get in touch with Steven Gronceski, CFP®, AIF®, Partner and Wealth Advisor with Waverly Advisors, LLC, at 312.262.6300 or Maddie Brown, CFP®, Wealth Advisor with Waverly Advisors, LLC at 219.842.2591.
Waverly Advisors, LLC (“Waverly”) is an SEC-registered investment adviser. A copy of Waverly’s current written disclosure Brochure and Form CRS (Customer Relationship Summary) discussing our advisory services and fees remains available at https://waverly-advisors.com/.
You should not assume that any information provided serves as the receipt of, or as a substitute for, personalized investment advice from Waverly Advisors, LLC (“Waverly”). This article reflects information available at the time it was written and should be used as a reference only. Talk to your Waverly advisor, or a professional advisor of your choosing, for the most current information and for guidance specific to your situation.
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101 E. 90th St., Suite A, Merrillville, IN 46410
www.waverly-advisors.com * 312.262.6300
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