Summer is a prime time for family gatherings, renting property, or enjoying the outdoors. But what happens if something goes wrong? Do you have the plan and the coverage you need to protect you and those you love?

Factor these aspects of summer life into your planning.

1. Vacation Properties

• A Family Camp or Cottage: An estate plan protects legacy property from creditors and taxes and prepares for its upkeep for years to come. You can decide who will manage maintenance and payments when you can't and determine how it will be used in the future and who will ultimately inherit it.
• A Short-Term Rental: Many vacation homeowners rent them out during the summer. Besides planning for ownership transfer after death, consider what happens in case a renter slips on the dock, or a guest's grill starts a fire.
  • Make sure you have enough insurance coverage, including liability insurance, in case a renter or guest becomes injured on the property.
  • Depending on your situation, an attorney may recommend holding the property in a limited liability company (LLC) or another legal entity, per local rental property laws.

2. Children Leaving for College: In Maine, once a child turns 18, they've reached the legal age of adulthood, and parents generally can't make decisions for them or access their records without permission.

Even if your child owns few assets, an incapacity plan that includes an advance health care directive and a durable power of attorney authorizes you to act on their behalf. Without a plan, if your child is hospitalized, doctors may be unwilling to speak with you, and care decisions become more complicated.

1. An advance directive (or living will) can also add a HIPAA (Health Insurance Portability and Accountability Act) release, letting you access their medical records. Without one, health-care providers could refuse to share information with you, even in an emergency. 
2. A durable power of attorney lets you discuss financial matters for your child like banking issues, credit cards, student loans, or taxes. 
3. A Family Educational Rights and Privacy Act (FERPA) release lets parents handle school or billing records if an emergency interrupts the semester. 

3. Summer Travel: Before you leave, review your estate plan and insurance coverage and have copies of your power of attorney and living will ready for an emergency.

If you don't have an estate plan, when you plan for a vacation is a good time to start one because creating a thoughtful estate plan takes time.

Travel can also be an ideal time to notify your personal representatives about where you're going and how to access your estate plan and digital portals, including insurance and financial accounts.

If you have children or pets, making arrangements for their care ensures their needs are met while you're away.

4. Recreational Vehicles or Vessels: An RV, all-terrain vehicle (ATV), or boat should have enough insurance, including liability coverage, in case of an accident. 

Also consider the asset's value and future. This can help you decide whether to sell it or pass it on before or after your death. You may also want to plan for ongoing costs like insurance, maintenance, and taxes.

Laws vary by state. If more than one heir will share a vehicle or boat, an estate planning attorney can review options that suit your situation.

• Vehicles: Unless joint ownership or a transfer-on-death arrangement is already in place, transferring the title after death could require probate or signing an affidavit for transfer through the state bureau of motor vehicles.
  
  • Under Maine law, if a married resident dies, ownership of a registered motor vehicle passes to their surviving spouse without fees or taxes, unless a will states otherwise. 
• Vessels and Recreational Vehicles: In Maine, these are registered through the Maine Department of Inland Fisheries and Wildlife (IF&W). A boat or ATV registered solely in the deceased owner's name could require probate or proof of legal authority before ownership can be transferred.

5. Valuable Heirlooms: Summer family gatherings often spark conversations about passing down items like antiques or keepsakes. Leaving these choices to verbal agreements could create tension later.

In Maine, a tangible personal property memorandum referenced in a will lets you list certain physical items and who should receive them; you may update, sign, and date it as your situation evolves without revising your will. (Such a memorandum doesn't apply to cash or titled property, such as a house.) 

Describe the items and recipients clearly so that your personal representative can identify them without confusion. 

Ensure Your Estate Plan Covers Your Summer Plans

Summer often brings travel, family gatherings, and major life transitions. Summer can be a good time to review your estate plan and confirm it still reflects your wishes and circumstances.

If you don't have an estate plan, or it has been years since you reviewed one, contact us online or call (207) 377-3966. We'll be happy to review your options with you.