Minnesota – the land of 10,000 lakes – and according to data from the Minnesota Department of Revenue, about 122,000 cabins and recreational properties. Thousands of families flock to their cabin in the summer months and want to keep the tradition alive for generations to come. So how do you keep your cabin in the family? And how do you minimize any issues arising in the future? The answers usually lie in a cabin trust.
This is what our Duluth attorneys say about cabin trusts:
A cabin trust is a popular planning tool for people who want to keep a lake cabin in the family. A similar option is to transfer title to a cabin to a limited liability company, whose members are family members with an interest in the cabin.
In a typical case, the cabin is transferred to a trust. The beneficiaries of the trust are children of the property owners. The trust agreement will include provisions about use and maintenance of the cabin, payment of expenses relating to the cabin and other matters dealing with the property.
A cabin trust will usually also address situation, such as family members who want to sell their in the cabin or who fail to pay their share of expenses to maintain the cabin.
An attorney at Gilbert Law office can help you determine whether a trust arrangement is a good idea and whether a trust is preferable to a limited liability company.