Plan Ahead to Make Summer Memories at the Family Cabin Last Forever

By
June 29, 2021

Summertime is a special time of year in Wisconsin. It brings many families to cabins where they make memories and traditions that will last forever. So, how do you make sure that these memory-making summers last for generations?  Attorney Shanna Yonke explain how you can plan for the long-term ownership and management of your cabin or other special family property, like hunting land or a family farm, in her latest vlog.

Video Transcript:

Summertime is a special time of year in Wisconsin. It brings many families to cabins where they make memories and traditions that will last forever. So, how do you make sure that these memory-making summers last for generations?

My name is Shanna Yonke, and I’m an attorney on Ruder Ware’s Estate Planning Team. Today, I’ll explain how you can plan for the long-term ownership and management of your cabin or other special family property, like hunting land or a family farm.

Many issues can arise if there is not a plan in place: For instance, the cabin may be subject to the claims of an individual owners’ creditors, including spouses in the event of a divorce. Individual owners may freely transfer their ownership interests in the cabin, and you could end up owning the cabin with in-laws and other non-family members. Individual owners may not pay their fair share of the costs associated with the cabin.

The most common solution to these issues involves using a limited liability company, or LLC.

The family creates a new LLC, and then they transfer the cabin and sometimes cash into the LLC. In return, the family members receive ownership interests in the LLC. The members of the LLC sign an agreement that sets forth the rules of the LLC and the cabin.

These rules dictate:

  • How the LLC is managed;
  • How decisions are made;
  • How and to whom members may transfer their ownership interests;
  • How annual expenses will be paid; and,
  • How the family will schedule use of the cabin, among other things.

The LLC makes multi-generational ownership and management of the family cabin possible. It offers protection against the issues mentioned earlier by anticipating and planning for them in advance.

If you have questions regarding how to plan for your family cabin or other special family property, please feel free to contact any attorney on Ruder Ware’s Estate Planning Team.

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