Downsizing in a down market

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

It's been a different winter than usual this year. Roofs have collapsed under the weight of our country's surprising snows. (A white dusting in Las Vegas? Really.) Violent flooding has moved foundations and deposited debris never seen before on lakeside lots and creekside properties. The repair and maintenance on primary residences has been expensive for many. And, the thought of keeping a weekend getaway in a down economy can really hit home if the kids are grown and no longer around to do the heavy lifting. Is this the year to ask the kids to buy you out, or to sell the mountain retreat outright -- suddenly a financial luxury/burden you no longer need -- and hunker down for another tight financial year? Two attractive options for keeping the cabin in the family are an outright sale to the kids -- the parents could even rent back from the kids if they choose -- or placing the cabin in a Qualified Personal Residence Trust. Both can be beneficial depending upon the parents'...