What are the options for our family cabin?
Minneapolis, MN estate planning attorney Cameron R. Kelly talks about certain options regarding a family cabin in family estate planning.
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People will use either trusts or family limited partnerships or limited liability companies for family cabins sometimes. We do that for people but we try to enter into it with some caution and talk about the ramifications of owning a property in a family over multiple generation. When people think about doing it, usually it’s a parent with a couple of kids and they think well, my children get along well enough that this is a good idea. But then you start thinking about the next generation or the one after that and there are more grandchildren in that second generation because the family keeps expanding. And then you go beyond that and the family gets even bigger.
And we talk about all the different things that have to happen with the cabin. So for example, how am I going to maintain the property, who can store things at the cabin? I might want to leave clothes there but there might be seven other people who want to leave clothes at the cabin for when they come up there. Who can use the boat, who can’t? Who can invite friends? What sort of conduct are we going to allow and not allow up at the cabin? And so it gets pretty complicated pretty fast. Minnesota and Wisconsin are both states where people love their cabins and they want to pass them to the next generation and we can definitely do it but we want to make sure we do it right.