ESTATE PLANNING PLYMOUTH, MN
Cabin Succession Planning
Keeping the Cabin in your Family
Cabin planning is preparing for the inevitable time when the owners of the cabin pass and the rest of the family wants to keep the cabin in the family. If done right, cabin planning will protect the family retreat and minimize conflict within the family. If a family has a cabin, a thorough estate plan should address how it will be held from one generation to the next.
Keeping the Cabin in your Family
Cabin planning is preparing for the inevitable time when the owners of the cabin pass and the rest of the family wants to keep the cabin in the family. If done right, cabin planning will protect the family retreat and minimize conflict within the family. If a family has a cabin, a thorough estate plan should address how it will be held from one generation to the next.
Things to Consider in Cabin Planning
Every cabin is unique, just as are the dynamics of each family that owns one. Several things need to be considered when planning for the cabin:
CURRENT OWNERSHIP
Who owns the cabin outright now, and how? The plan will be different depending on whether the cabin is owned by one person, in joint tenancy with right of survivorship, or as tenancy in common. Check the current deed, as memories of these things tend to be shaky.
INTEREST IN FUTURE OWNERSHIP
Everyone may have loved the cabin growing up. That, however, does not mean that everyone will want to own the cabin in the future. It may be too much of a financial burden on potential owners. Others may just have moved on to other interests or moved far enough away that maintaining the cabin is not a real possibility. Make sure to determine who wants the cabin before a plan is formed.
MANAGEMENT ISSUES
Budgeting for maintenance, utilities, renovations, and emergencies are merely the financial burdens that come with a cabin. With potentially multiple owners, there are a host of other issues. These include, for example, dispute resolution, potential buyouts, and how people will share a cabin during the year.
If done right, cabin planning will minimize family squabbling. Clear roles will be established for daily and yearly upkeep and instructions will be made in case of unexpected problems. With proper planning, the cabin can be held in the family from generation to generation, while minimizing intra-family conflict.
Cabin Planning Options
CABIN TRUST
Probably the most common, efficient, and easiest way to plan for cabin succession is to place the cabin in a trust. A trust requires minimum effort, creditor and lawsuit protection, and is incredibly flexible to allow the family to plan for yet-to-be-foreseen circumstances that may arise in the future.
DIRECT TRANSFER
Either during the life of the current owners or upon the death of the last owner of the cabin, the cabin can pass to the new owners outright. The new owners can take the property as either joint tenants or as tenants in common, depending on the circumstances.
FORM AN LLC
The family can form a limited liability company and transfer the ownership of the cabin to it. Then the family can distribute shares of the LLC to the rest of the family on the last surviving owner’s death.
Gregory was fantastic to work with for our documents. I highly recommend him to anyone looking to do their estate planning. He met with us repeated and review information with diligence. His attention to questions and providing responses was outstanding.
– Micky S.
Ready to Get Started With Cabin Planning?
Minnesota is known through the country for the number of cabins owned by families. Your family’s attachment to your cabins is special. Signature Law is dedicated to providing people with a comprehensive estate plan. As necessary, this should include planning for the family cabin. If you have questions about your family cabin’s succession, please schedule a free consultation.