Much like a home, a cabin is more than just a piece of real estate (and a potentially significant financial asset). It’s also a treasure trove of memories. Minnesota is at the heart of cabin country, and much of your family life may center on cabin life: swimming, canoeing and water-skiing in a refreshing lake. Staying up on long summer nights watching shooting stars. Roasting marshmallows in the warmth of a campfire.
When it comes to estate planning, you may have very specific wishes for your cabin. For example, how can you ensure that the cabin is kept in the family for future generations to enjoy? It’s well worth the time and effort now to navigate these issues and develop a tailored plan. Working closely with an attorney, you will need to address complex considerations such as:
- How should you structure a shared ownership arrangement?
- How can you provide for maintenance, taxes and other expenses?
- How can you work out a fair arrangement so each family member gets to spend time at the cabin?
- How can you protect the cabin from creditors or financial mismanagement?
- How can you avoid the nightmare scenario of family in-fighting over cabin issues?
The last thing you want is for the cabin to become a source of disagreement and discord. Fortunately, several estate planning options may offer a solution. The most common include a family-owned limited liability company (LLC) and a trust. When carefully structured, these tools can implement your wishes while anticipating potential problems and providing a means for their resolution.
With the right approach, going “up north” can remain a cherished family tradition for generations to come. If you are thinking about your cabin and how best to protect it, contact the estate planning team at Quinlivan & Hughes, P.A.
Established more than 100 years ago, Quinlivan & Hughes ranks among the oldest and largest law practices in Central Minnesota. The full-service law firm has growing legal teams in the areas of employment law, business law, government law, insurance defense, trust and estate planning, and general litigation. Learn more at Quinlivan.com.