Potential problems of group vacation-home purchase

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

DEAR BOB: My two daughters and their husbands are buying a vacation home with all costs split between the two families. They intend to take advantage of the tax write-offs for mortgage interest and property taxes. What is the best way for them to take title and to document how costs are to be split, as well as an exit strategy if one wants to sell? They are borrowing the funds from us, secured by a recorded mortgage. Would a living trust be advantageous? --Alan D. DEAR ALAN: To determine the best way to hold title, all involved parties should consult a local real estate attorney in the state where the vacation home is located. Purchase Bob Bruss reports online. There are many potential problems for the joint purchase you describe, especially if one of the couples divorces or files bankruptcy. As the mortgage lender, you are very wise to think of these possible problems before the purchase. Holding title in a partnership can provide for the issues you mention, such as dividing expenses...