We have been seeing a lot of “personal” LLCs in Maine lately for vacation homes. Some attorneys are recommending LLCs instead of Personal Trusts to clients for their seasonal, family-owned properties.
An LLC is a “commercial” (business) entity so you cannot place personal home insurance thus the way you can on a Trust entity. Personal Liability Umbrellas do not respond to LLCs either – you need separate, commercial umbrellas for the LLC. By choosing to place a seasonal home in an LLC, you will waste money and lose very broad coverage that comes with “personal” insurance (liability is worldwide on a basic homeowners policy – never on commercial forms [coverage needs to be specifically extended]).
LLCs are a very bad idea for seasonal homes