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[/ezcol_2fifth][ezcol_3fifth_end]Many people have that treasured “home away from home.” The place where you relax, swim, boat, ski, and take your grandchild fishing for the first time in their life. It is a place filled with memories, stories and important family gatherings and moments.
Cottages are particularly popular in Southwest Michigan, where Dresser Law is located. And as a law office specializing in estate planning, we have heard many owners say they want to keep the cottage in the family, for future generations to enjoy.[/ezcol_3fifth_end]
Family Cottage Planning is more than adding you child’s name to the deed, thus addressing the succession of the cottage through your estate plan. It is planning to avoid potential family or external party disputes:
- Preventing a joint owner from forcing a sale through an action for partition
- Preventing an interest in the cottage to be transferred outside of the family
- Protecting owners from claims
- Setting up a framework to make decisions regarding the cottage
- Setting up use and maintenance rules (i.e. house rules)
- Setting up a fund to pay for cottage expenses
- Requiring mediation for family cottage disputes
- Allocating control of the cottage between or among generations of owners
- Planning to potentially delay or avoid the uncapping of Michigan property taxes
- Planning how to buyout an owner’s interest upon death, divorce, voluntary cash out or financial inability to contribute
- Drafting a written family cottage operating agreement
Do not leave the succession of your family cottage to the deed or hopes that “it all work out.” If you have a cottage law matter you’d like to discuss in Sturgis, Michigan or the surrounding counties, please call (269) 689-8527 or send us an email through the contact form here.