By Anna McDonald, Director of Family Learning
Family vacation homes have an emotional connection unlike any other asset. They often symbolize family legacy and continuity. A house by the ocean, near a lake or a cabin in the mountains can enrich relationships, provide new experiences for children, create opportunities to spend time across multiple generations, and strengthen friendships while offering a private escape.
The emotions we store about even the smallest details of a vacation home – the smell of the salty air by the ocean after a long winter, or opening up the musty cabin for the first time for the season, or sitting by the lake listening to the waves lap against the shore during the scorching summer humidity – these simple retreats from busyness aid in breathing life into a home that is so much more than a property. The retreat becomes part of the family itself.
A vacation home isn’t always perfect. Sometimes, the shared family struggle of tasks around the home, like helping grandparents winterize the boat or power washing the pool deck, is a meaningful way to teach teamwork and responsibility – things often not discovered if a family goes on vacation somewhere without the same ownership stake.
Because of the deep and often generational emotional ties the home holds, as the family grows and changes over time, few assets can cause conflict and arguments like the vacation home. These conflicts may negatively bleed into other family business assets and relationships.
Vacation homes are a family undertaking that Moneta Wealth Advisors often help our clients to navigate. Whether you are considering buying a second home or have one that has been in the family for generations, a comprehensive and well-thought-out succession plan for second homes helps ensure a highly emotional asset isn’t guided by heartstrings, but rather by the shared goals and vision for the family’s well-being. In our experience, the plan should address three key areas: A family goals statement for the home; a consideration of ownership & cost structure; and attention to property management.
A Family Statement for the Vacation Home
Families should establish a statement for the vacation property that provides a framework for the home’s goals and succession plan. This can align with the family’s overall mission and goals, but it should include specific guidelines for the property. The statement is not a formal legal document but rather a tool to provide decision-making guidance to the family.
A great way to begin is to reflect on the intended use and purpose of the home. It may seem silly but understanding the why behind the vacation home allows every decision about it to align with long-term goals. For instance, is the home only for use by family members, is it a rental investment property, or will it be utilized in some combination of the two?
The most difficult portion of the statement can be the succession plan for the home. At some point, the value of all the memories and time together as a family could be tested. For example:
- An unsolicited, above-market-value offer for the home.
- One family (if multiple families are involved in ownership) wants out of ownership.
- One family member wants to change the home’s goals from a non-revenue stream asset to a rental asset.
Second homes symbolize family legacy and continuity. When the family creates a statement for their home, it helps maintain a connection to generational roots while articulating an agreed-upon path forward.
Ownership & Cost
Title and ownership (whether held in an LLC, an irrevocable trust, or tenants in common) need to be confirmed. If the property has been in the family for generations, the deed should be reviewed to ensure it has been titled correctly.
Consulting your Moneta advisor before a purchase can help ensure the ownership structure is in the best interest of your overall financial picture.
Costs matter. Maintaining a second home is expensive. While you may see social media posts claiming tax benefits and potential rental income, many people tend to overlook the true cost of owning a second home. Tax benefits vary widely from situation to situation. Furthermore, when the second home is owned jointly, not all family members may have the same means to pay for expenses, and often they have different values about how they want to spend money on this asset.
For instance:
- One person may want the home to have the most up-to-date interior design, while another family member may feel that Grandma and Grandpa’s decor is part of the home’s charm and shouldn’t be changed.
- Second homes require maintenance and updates. How will these expenses be handled? Depending on where the home is located, expenses can be much larger than those of the primary residence. For instance, salt water requires much more maintenance on siding, and mold and moisture issues inside need to be constantly addressed. As the home insurance landscape changes, natural disasters can significantly increase costs.
Frustration over financial issues for the home can spill over into broader family dynamics. A proactive approach to ownership structure, profit and loss, expenses, and a long-term financial plan for the home may help ensure the home remains a cherished source of enjoyment for many generations.
Property Management
Peaceful family dynamics can be sorely challenged by vacation home ownership. What one family member deems appropriate, another may find unacceptable. How the home is managed both by the family and a potential property management company greatly influences the success of owning a second home. Among the items to address:
- Are any number of guests allowed? Are parties allowed?
- How will the schedule be handled? What happens when friends ask to use the home? This will happen; it’s a matter of whether the family thinks it’s acceptable and how close a friend must be in order to use the home.
- What is the plan for the holidays and vacations if everyone wants to be together?
- What are the rules for boats, jet skis, ATVs, and hunting equipment? For example, at what age can someone drive the ATV or golf cart on the property?
- Who is in charge of things like deep cleaning, or cleaning outdoor areas that are not covered by hired house cleaners or the property management company (if there is one)?
The management of the home ultimately ties in with the safety and security of the entire family. A vacation home provides a retreat from the pressures of daily life and public scrutiny. To ensure the home remains a safe place, having a plan for its management will help it to remain a treasured asset.
By weighing all these factors and consulting your trusted Moneta advisor, families can make informed decisions that align with lifestyle goals and financial plans.
© 2026 Advisory services offered by Moneta Group Investment Advisors, LLC, (“MGIA”) an investment adviser registered with the Securities and Exchange Commission (“SEC”). MGIA is a wholly owned subsidiary of Moneta Group, LLC. Registration as an investment adviser does not imply a certain level of skill or training. The information contained herein is for informational purposes only, is not intended to be comprehensive or exclusive, and is based on materials deemed reliable, but the accuracy of which has not been verified. You should consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. These materials do not take into consideration your personal circumstances, financial or otherwise.
