At LJPR, we know that the Family Cottage is a place full of memories and timeless traditions. We want each moment you spend at the cottage to be free of the burden of worrying about the cottage staying in your family. Whether your cottage has been in the family for decades, or you are just beginning the traditions of owning a cottage, we will help you plan for the future of your cottage and, hopefully, help keep it in your family for future generations to enjoy. Click here for our presentation.
5 Tools of Cottage Protection
1Revocable Living Trust: avoids probate, allows control, privacy. Very simple and flexible while the grantors are alive. Requires separate tax return and accounting after death of the grantors. Currently allows step-up in basis. Will create prospective property tax reset.
2Limited Liability Company (LLC): avoids probate if structured with a buy-sell and or trust. Allows control and governance of cottage. Requires separate tax return. Property tax reset is prospectively avoidable.
3Operating Agreement: contract for operation of family cottage.
4Lady Bird Deed: Extremely simple deed that allows for probate-free transfer to residual beneficiaries. Does not provide control.
5Dynasty Trust: An irrevocable life insurance trust that ‘endows’ the operations of the family cottage. Provides an income-tax and estate-tax free pool for funding the cottage operations after the death of the Grantors.
Top 5 Concerns of Cottage Owners
1How can I keep ownership of my cottage in my family for the enjoyment of future generations?
2How can I protect ownership of my cottage and prevent it from ending up in the hands of non-family members in the event of divorce, creditor issues, and/or bankruptcy of a family member?
3How can I plan so that there will be adequate resources to maintain and preserve my cottage for future generations?
4What if conflicts arise within my family as to how to use, maintain and preserve my cottage?
5What if some of my family members do not want to preserve ownership of my cottage for future family members?