The goal of cottage succession planning is to set up legal ground rules that provide the best chance to keep a cottage in the family for future generations. Cottage law draws on legal concepts from estate planning, real estate and business law. A cottage plan usually addresses the concerns through the creative use of a limited liability company (LLC) or a trust to own the property.
Properly crafted, the LLC's operating agreement or a trust agreement covers such topics as:
- Who can own a share of the cottage
- Who pays to maintain it (and what happens if they don't)
- Who gets to use it and when
- How to make future decisions regarding the property
- How to respond when an owner wants to get out of the arrangement for any reason
Mark E. Kellogg has devoted over 30 years of practice to the needs of family and closely-held businesses and enterprises, business succession planning, real estate, tax law and estate planning. Mark's breadth of knowledge and experience gives his clients unique insight into the special considerations associated with the cottage law practice. Each family has unique needs, resources, objectives and concerns, and the plan for their cottage must be tailored to fit their special circumstances and meet their requirements.
For further information on cottage succession planning, please click HERE.