What do you think?
Rate this book
Saving the Family Cottage: A Guide to Succession Planning for your Cottage, Cabin, Camp or Vacation Home 2nd Edition
In Saving the Family Cottage, attorney Stuart Hollander explains why problems arise when a vacation home is passed on to the next generation (unequal wealth distribution among siblings and cousins being the usual culprit) and offers practical suggestions on how to address this problem. Hollander suggests how to incorporate succession planning for a vacation home into an estate plan and gives practical advice on such things as which entity is best for succession planning, how to develop a cottage schedule, what to do about an owner who fails to pay his or her assessment, whether to establish an 'endowment,' and how to allocate control between and within generations of owners. Although Hollander uses the term 'cottage,' the principles of his book apply to any property that a family wants to retain, whether it is an Adirondack camp, an Upper Midwest cabin, a Western ranch, or beach home property on an ocean, lake, or river. Written for the vacation home owner but with information that also will be useful to attorneys and financial planners, the book engages the reader with stories of cottage 'wars' and planning gone awry. Narrative examples and easy-to-follow graphics illustrate the more technical aspects of succession planning for a vacation home. The book makes a complex problem understandable and offers methods to help keep a second home in the family for generations. The second edition was published to acknowledge the addition of David S. Fry, Esq. as the editor and successor to the author's cottage law practice. Fry brings his years of experience as an attorney and fourth generation cottage owner to the book.
- GenresNonfictionAdultLegal
248 pages, Paperback
First published July 15, 2007
84 people are currently reading
159 people want to read
Ratings & Reviews
Friends & Following
Create a free account to discover what your friends think of this book!
Community Reviews
Displaying 1 - 21 of 21 reviews
December 2, 2008
This book describes how to keep property in the family without tearing the family apart. It is written by a lawyer so is somewhat dry at times. The interesting legal option is putting the property in a Limited Liabiltiy Corporation. This vehicle has lots of benefits and is fairly easy to set up. It does involve upfront costs but would be worth it in the end to keep peace in the family.
November 8, 2014
lots off stuff in here that is intuitive, but some that is not. and it's the stuff you don't think of that is the best reason to read this book. and you know it's your siblings that need it most - right? (that's another good reason to read it. whether or not you're on the same page now -you will be by the time you all finish it. and don't try to do a whole lot of fancy planning before you all get through it. a must read for the summer cottage inheritors.
June 10, 2010
Sent by my husband's oldest sibling, we will be hammering out an agreement to share the family cabin this year. Helpful info.
October 13, 2018
A must read for anybody sharing ownership of cottage, camp , or vacation home.
May 14, 2020
* Avoid Tenants in Common where cabin is left in equal parts to siblings. Anyone can force its sale in this arrangement. "Right to partition" means no one can be forced to won property.
* Use an operating agreement / succession plan under an LLC structure stating cabin cannot be sold without mutual agreement, heirs contribute to ordinary cottage expenses in proportion to their actual use, heirs must buy one another out with price determined by formula. Can state rigid things like only descendants of founders may be owners and leave flexibility where the schedule can be amended upon vote of descendants who own a majority of the cottage LLC.
* Rabbit Problem of potential owners expanding exponentially over the years
#4.
* Real estate law controls the rights and duties of direct owners while indirect owners rights and duties are established by laws of trusts, partnerships, corporations, and LLCs AKA Entity Law. Real estate law does not promote keeping the cottage in the family over multiple generations.
* LLC protects against dower whereas the spouse can take over the interest in the cabin from a deceased heir but PA is not a dower state it looks like.
* LLC can have terms for an heir who can't or won't pay basic costs on the cabin like loss of right to use cabin, a fine, a reduction in heir's ownership share etc.
* LLC can keep creditors from seizing shares of ownership from debtor heirs
* LLC can prevent partition where one heir can force the sale of the cabin to be cashed out but the heir could compel the other heirs to buy him / her out
* LLC lets a majority of heirs decide the standard of maintenance for the cottage and the majority can compel the dissenting heirs to contribute to the expense of the maintenance and improvements
* LLC could create an endowment from life insurance of a founder where the death benefit can be directed to an endowment invested by the heirs which then provides income for paying cabin expenses. Or, can award wealthiest heir first purchase at a fraction of the appraised value. If first purchase isn't exercised, the cabin can be sold and proceeds distributed among heirs.
#5.
* Find first line in deed to understand title
* Concurrent or joint ownership can be 1). tenancy in common, 2a). joint tenancy, 2b). joint tenancy with right of survivorship, and 3). tenancy by the entireties
1). TENANCY IN COMMON (how most children inherit the family cottage... each grown child is a tenant in common).
* Each tenant in common hast right to partition (ability to force the sale).
* “Put option” allows for partition and graceful ownership exit rather than partition (more in chapter eleven).
* Owning 1% of the cottage and 99% entitle tenants in common to the same amount of time at the cottage, but they pay that percentage for upkeep and gain that percentage of the sale if and when that happens.
* Tenant in common can transfer their interest to anyone and any organization at any time.
* Dower interest if in state will trump any will of the deceased and the surviving spouse can force partition.
* TIC does not owe rent to other TICs no matter how or how long TIC uses it. However, if TIC's use negates use of other TICs like there is only one bedroom then rent can be applied in most states.
* TIC can rent out cottage against other TICs’ will. Some states require sharing the rent between TICs.
* TIC don’t need to compensate other TIC who is doing management work of cottage (tax filings, rental documents and check ups etc.) but compensation for such work can be specified in an agreement.
* TIC not entitled to reimbursement for improvements / repairs unless they are necessary to preserve the cottage (a capital improvement).
* TIC paying most expenses not necessarily entitled to reimbursement. Can be reimbursed for property taxes but less likely for mortgage or insurance payments. Tricky if assessor sends tax bill fraction to each TIC and one doesn't pay.
* TICs can insure only their fraction of the cottage.
#6.
2). JOINT TENANCY (all rules described in #5 for for TIC apply to JT)
* Whoever lives longest automatically becomes the sole owner.
* JT must pay equal shares (some states don't allow partition so it still comes down to state cottage is in)
* "Indestructible" Joint Tenancy (legally called "joint life estate with dual contingent remainders" can only be terminated with consent of all joint tenants. Can be useful if children can't get along and / or can't prepare a cottage succession plan.
* Tenancy by the entireties can only be held by married couples. Neither spouse may destroy this estate without the consent of the other.
* Community Property treats married couple as an economic partnership. AZ, CA, ID, LA, NM, TX, WA, WI have community property. If you live in one of these states, it can apply to cottages outside of these states.
#7. Short Term Solutions
* Life Estates allows someone (life tenant) use of property during their life but no rights to leaving the property upon their death (From B to A and C - AKA remaindermen -, reserving to B a life estate). Life tenant pays share of the property taxes and maintenance and can make improvements. Can insure if B wants for their share of the cottage. This will interfere with the sale of the cottage as life tenant would still have still has rights to cottage long as they are alive.
* Ownership Agreement for those expecting to tell in near future or who can't come to an agreement on LLC items or who can't afford a cottage LLC. Only effective with each owner's signature. 1). each owner waives right to partition, agree to sharing cottage (Schedule), sharing expenses, and determine which decisions are made by simple majority and unanimous agreement. Not as effective for multi-generation planning as LLC, trusts, or corporations.
#8. Choosing the Right Legal Entity for Your Cottage
* Direct ownership governed by real estate doctrines, indirect ownership by laws intended for business. This limits liability.
* Can file entity documents in state where cottage is or another state with more favorable laws
* Types of entities
1). Trusts / General Partnerships offer no liability shield, must have a trustee (bank or family member), not democratic like LLC, cannot last more than @ 90 years
2). Limited Partnership hybrid of a general partnership and LLC. Inactive AKA limited partners granted shield from creditor claims. Needs general partner whose assets are not protected. This general parter can be LLC to gain liability protection.
3). Limited Liability Limited Partnership grants limited liability automatically to all partners and makes no need to set up corporation or LLC to serve as general partner.
4). The Corporation insulates owners (shareholders from personal liability for entity debts. Three tiers: shareholders who select directors who appoint officers. Hard to draft documents and then follow them. A bit over complicated for a cottage. Liability protection can be lost if statutory formalities not followed.
5). The Close Corporation allows corporation to file an election eliminating need for board of directors and for shareholder meetings. Easier to maintain than corporation but more expensive to form. Best version would be Subchapter S election.
6). S Corporation can be taxed if it were a partnership so each shareholder can claim proportionate share of real property tax deduction. "S election" is the election taxed as a partnership. Subchapter S is fragile.
7). LLC liability shield of a corporation and partnership advantages combined. File docs with state, not necessarily where cottage is. Member managed (controlled by its owners) or manager-managed (controlled by managers appointed / elected by owners). Keep track of owners and their percentage interests and need an operating agreement (rights and obligations or each member). CA and MI property tax makes new owners taxes much higher than previous owners. Trust allows a way around the tax increase in these states but not as easily managed as LLC. Benefits of LLC - liability shield, prevent partition, pass through taxable income with the "S" election, endowment, amend governing agreements, favorable tax treatment, perpetual existence, less filing fee than corporation, adaptable to family's specific requirements, less formal and simpler than corporations, democratic, collect assessments from owners, can go back to direct real estate law ownership with favorable tax consequences.
#9.
* Operating agreement can keep company owners to just line of descent
* Automatically Permitted Transfers - member's interest can be transferred to descendant and revocable living trusts (minimize fed estate tax and help avoid probate administration) but they must comply with all provisions of operating agreement. Beneficiary of the trust must be the member or member's descendants.
* Transfers Permitted on Condition - Approve transfer with consent of other members for example with step children. Set required vote amount where you want (80% is high, 51% is low)
* Prohibited Transfers - for example to creditors or ex-spouses. Can also grant company right to force creditor or ex-spouse to sell back interest if they get around initial rule. Otherwise, they could force partition with their interest.
* Branch Concept - one of a number of equal shares of ownership in cottage LLC. Each branch member chooses how to schedule their share of time. Can write use of all branch members is suspended if any branch member hasn't paid. "Call option" is right of the company to force defaulting member to sell their membership interest back to company. Opposite of "put option" (right of members to force company to buy their interest). In call or put, company is paying off member so formula starts with a discount (deeper on call than on put) and selling member must accept installment payments. Can require branch members to first offer interest to members in their branch before considering members in other branches maintaining power balance. Or, they must first offer their interest to the company before other branches AKA "conditionally permitted transfer." If member is childless, can set up their transfer as automatically permitted to the company.
#10.
* Immediate Cottage LLC happens immediately, Springing Cottage LLC happens upon owner's death
* Form Your Own LLC by Anthony Mancuso (Nolo) is good guide for how tos. Can create LLC online at www.nolo.com.
* Understand tax consequences before transferring to LLC (tax increases or loss of exemption like homstead). Helpful steps on setting up LLC on page 148.
* Springing Cottage LLC set up through estate plan. In place of parent's (founder's) revocable living trust, attach the operating agreement or admission agreement (condition to receiving the gift of the cottage interest). Founder stays in control to sell if needed etc. in their lifetime, no income tax filing required, refi easier, insurance easier to find, founder pays no filing fees or document transfer taxes in their lifetime. Only need operating agreement (but is the hardest part), trustee can handle rest upon founder's death. Make sure trust allows trustee to amend agreement to confirm to current law (depending on how much time has passed before death of founder). Allow agreement to be amended by heirs unanimously.
* Choose State - usually home state or state where cottage is although DE is very business friendly
* Choose Company Name - can reserve (but not indefinitely) while working on operating agreement but name only official upon transfer of cottage.
* Have Attorney Draft Operating Agreement (hardest part). Immediate involved more people so is harder to do than Springing with founder having final say. Have an heir take the lead as liaison between lawyer and other heirs.
* File Articles of Organization
* Transfer Cottage to LLC and check it is covered by title insurance (if covered purchase endorsement from insurance co. naming cottage LLC as additional insured or even better but more expensive purchase new title insurance with cottage LLC as named insured and ask for nonimputation endorsement precluding denial of coverage following change of ownership in the company). Bill of sale transfers all contents of cottage (personal property) to the company.
* Have members sign operating agreement. Include admission agreement so each heir agrees to be bound by the LLC operating agreement.
* Issue membership certificates in the millions to avoid fractions down the road with the rabbit problem.
* Confirm insurance coverage. Don't accept commercial rates if insurance company tries to apply them b/c of LLC. If so, maintain conventional homeowners' insurance and name company as additional insured. Ensure cottage contents are properly insured as well if they have been transferred to LLC.
* Use a lawyer to draft operating agreement and set up LLC and preferably not from the family. Cost $4500-6500 most likely. Lower for Springing, higher for Immediate. Cost doesn't include tax planning, estate planning or real estate consultation. Have family lawyer check work that LLC fits into estate plan and operating agreement and articles of organization conform to laws of the state where company is established.
#11.
* Put option allows for member to be bought out by LLC at reduced rate and with installments (with prepayment permissible)
* Value of property established one of three ways: stipulated (value at time inherited... locked in), tax assessment, appraisal. Calculation goes value (determined one of three ways) + LLC cash + LLC personal property - LLC debt. Can have multiple appraisals paid for in various ways between LLC and member looking to leave. Require appraiser at least be a Member of the Appraisal Institute (MAI).
* Discussed a 30% discount with 20% purchase price paid up front and promissory note for balance payable over 10 years bearing interest at the prime rate at time of sale. Deeper discount more you view cottage as not as an asset but as place of recreation.
* Interest rate of payoff must meet "applicable federal rate" published monthly by IRS. Author prefers National Mortgage Contract Interest Rate b/c it approximates a mortgage. Offer collateral in form of mortgage or deed of trust which member discharges upon being paid in full.
* Cap indebtedness of LLC at agreed amount so multiple puts (simultaneous or over time) can't happen making payback difficult
#12
* Member managed is direct democracy better with small groups of owners
* manager-managed is representative democracy better with lots of owners
* Keep list of decisions requiring unanimous agreement short
* Management committee with representative from each branch could have great power or could run just the basics leaving "reserved list" items where all members have a say
* Duty allocation of management committee - check writer, maintenance confirmation, scheduler
* Use an operating agreement / succession plan under an LLC structure stating cabin cannot be sold without mutual agreement, heirs contribute to ordinary cottage expenses in proportion to their actual use, heirs must buy one another out with price determined by formula. Can state rigid things like only descendants of founders may be owners and leave flexibility where the schedule can be amended upon vote of descendants who own a majority of the cottage LLC.
* Rabbit Problem of potential owners expanding exponentially over the years
#4.
* Real estate law controls the rights and duties of direct owners while indirect owners rights and duties are established by laws of trusts, partnerships, corporations, and LLCs AKA Entity Law. Real estate law does not promote keeping the cottage in the family over multiple generations.
* LLC protects against dower whereas the spouse can take over the interest in the cabin from a deceased heir but PA is not a dower state it looks like.
* LLC can have terms for an heir who can't or won't pay basic costs on the cabin like loss of right to use cabin, a fine, a reduction in heir's ownership share etc.
* LLC can keep creditors from seizing shares of ownership from debtor heirs
* LLC can prevent partition where one heir can force the sale of the cabin to be cashed out but the heir could compel the other heirs to buy him / her out
* LLC lets a majority of heirs decide the standard of maintenance for the cottage and the majority can compel the dissenting heirs to contribute to the expense of the maintenance and improvements
* LLC could create an endowment from life insurance of a founder where the death benefit can be directed to an endowment invested by the heirs which then provides income for paying cabin expenses. Or, can award wealthiest heir first purchase at a fraction of the appraised value. If first purchase isn't exercised, the cabin can be sold and proceeds distributed among heirs.
#5.
* Find first line in deed to understand title
* Concurrent or joint ownership can be 1). tenancy in common, 2a). joint tenancy, 2b). joint tenancy with right of survivorship, and 3). tenancy by the entireties
1). TENANCY IN COMMON (how most children inherit the family cottage... each grown child is a tenant in common).
* Each tenant in common hast right to partition (ability to force the sale).
* “Put option” allows for partition and graceful ownership exit rather than partition (more in chapter eleven).
* Owning 1% of the cottage and 99% entitle tenants in common to the same amount of time at the cottage, but they pay that percentage for upkeep and gain that percentage of the sale if and when that happens.
* Tenant in common can transfer their interest to anyone and any organization at any time.
* Dower interest if in state will trump any will of the deceased and the surviving spouse can force partition.
* TIC does not owe rent to other TICs no matter how or how long TIC uses it. However, if TIC's use negates use of other TICs like there is only one bedroom then rent can be applied in most states.
* TIC can rent out cottage against other TICs’ will. Some states require sharing the rent between TICs.
* TIC don’t need to compensate other TIC who is doing management work of cottage (tax filings, rental documents and check ups etc.) but compensation for such work can be specified in an agreement.
* TIC not entitled to reimbursement for improvements / repairs unless they are necessary to preserve the cottage (a capital improvement).
* TIC paying most expenses not necessarily entitled to reimbursement. Can be reimbursed for property taxes but less likely for mortgage or insurance payments. Tricky if assessor sends tax bill fraction to each TIC and one doesn't pay.
* TICs can insure only their fraction of the cottage.
#6.
2). JOINT TENANCY (all rules described in #5 for for TIC apply to JT)
* Whoever lives longest automatically becomes the sole owner.
* JT must pay equal shares (some states don't allow partition so it still comes down to state cottage is in)
* "Indestructible" Joint Tenancy (legally called "joint life estate with dual contingent remainders" can only be terminated with consent of all joint tenants. Can be useful if children can't get along and / or can't prepare a cottage succession plan.
* Tenancy by the entireties can only be held by married couples. Neither spouse may destroy this estate without the consent of the other.
* Community Property treats married couple as an economic partnership. AZ, CA, ID, LA, NM, TX, WA, WI have community property. If you live in one of these states, it can apply to cottages outside of these states.
#7. Short Term Solutions
* Life Estates allows someone (life tenant) use of property during their life but no rights to leaving the property upon their death (From B to A and C - AKA remaindermen -, reserving to B a life estate). Life tenant pays share of the property taxes and maintenance and can make improvements. Can insure if B wants for their share of the cottage. This will interfere with the sale of the cottage as life tenant would still have still has rights to cottage long as they are alive.
* Ownership Agreement for those expecting to tell in near future or who can't come to an agreement on LLC items or who can't afford a cottage LLC. Only effective with each owner's signature. 1). each owner waives right to partition, agree to sharing cottage (Schedule), sharing expenses, and determine which decisions are made by simple majority and unanimous agreement. Not as effective for multi-generation planning as LLC, trusts, or corporations.
#8. Choosing the Right Legal Entity for Your Cottage
* Direct ownership governed by real estate doctrines, indirect ownership by laws intended for business. This limits liability.
* Can file entity documents in state where cottage is or another state with more favorable laws
* Types of entities
1). Trusts / General Partnerships offer no liability shield, must have a trustee (bank or family member), not democratic like LLC, cannot last more than @ 90 years
2). Limited Partnership hybrid of a general partnership and LLC. Inactive AKA limited partners granted shield from creditor claims. Needs general partner whose assets are not protected. This general parter can be LLC to gain liability protection.
3). Limited Liability Limited Partnership grants limited liability automatically to all partners and makes no need to set up corporation or LLC to serve as general partner.
4). The Corporation insulates owners (shareholders from personal liability for entity debts. Three tiers: shareholders who select directors who appoint officers. Hard to draft documents and then follow them. A bit over complicated for a cottage. Liability protection can be lost if statutory formalities not followed.
5). The Close Corporation allows corporation to file an election eliminating need for board of directors and for shareholder meetings. Easier to maintain than corporation but more expensive to form. Best version would be Subchapter S election.
6). S Corporation can be taxed if it were a partnership so each shareholder can claim proportionate share of real property tax deduction. "S election" is the election taxed as a partnership. Subchapter S is fragile.
7). LLC liability shield of a corporation and partnership advantages combined. File docs with state, not necessarily where cottage is. Member managed (controlled by its owners) or manager-managed (controlled by managers appointed / elected by owners). Keep track of owners and their percentage interests and need an operating agreement (rights and obligations or each member). CA and MI property tax makes new owners taxes much higher than previous owners. Trust allows a way around the tax increase in these states but not as easily managed as LLC. Benefits of LLC - liability shield, prevent partition, pass through taxable income with the "S" election, endowment, amend governing agreements, favorable tax treatment, perpetual existence, less filing fee than corporation, adaptable to family's specific requirements, less formal and simpler than corporations, democratic, collect assessments from owners, can go back to direct real estate law ownership with favorable tax consequences.
#9.
* Operating agreement can keep company owners to just line of descent
* Automatically Permitted Transfers - member's interest can be transferred to descendant and revocable living trusts (minimize fed estate tax and help avoid probate administration) but they must comply with all provisions of operating agreement. Beneficiary of the trust must be the member or member's descendants.
* Transfers Permitted on Condition - Approve transfer with consent of other members for example with step children. Set required vote amount where you want (80% is high, 51% is low)
* Prohibited Transfers - for example to creditors or ex-spouses. Can also grant company right to force creditor or ex-spouse to sell back interest if they get around initial rule. Otherwise, they could force partition with their interest.
* Branch Concept - one of a number of equal shares of ownership in cottage LLC. Each branch member chooses how to schedule their share of time. Can write use of all branch members is suspended if any branch member hasn't paid. "Call option" is right of the company to force defaulting member to sell their membership interest back to company. Opposite of "put option" (right of members to force company to buy their interest). In call or put, company is paying off member so formula starts with a discount (deeper on call than on put) and selling member must accept installment payments. Can require branch members to first offer interest to members in their branch before considering members in other branches maintaining power balance. Or, they must first offer their interest to the company before other branches AKA "conditionally permitted transfer." If member is childless, can set up their transfer as automatically permitted to the company.
#10.
* Immediate Cottage LLC happens immediately, Springing Cottage LLC happens upon owner's death
* Form Your Own LLC by Anthony Mancuso (Nolo) is good guide for how tos. Can create LLC online at www.nolo.com.
* Understand tax consequences before transferring to LLC (tax increases or loss of exemption like homstead). Helpful steps on setting up LLC on page 148.
* Springing Cottage LLC set up through estate plan. In place of parent's (founder's) revocable living trust, attach the operating agreement or admission agreement (condition to receiving the gift of the cottage interest). Founder stays in control to sell if needed etc. in their lifetime, no income tax filing required, refi easier, insurance easier to find, founder pays no filing fees or document transfer taxes in their lifetime. Only need operating agreement (but is the hardest part), trustee can handle rest upon founder's death. Make sure trust allows trustee to amend agreement to confirm to current law (depending on how much time has passed before death of founder). Allow agreement to be amended by heirs unanimously.
* Choose State - usually home state or state where cottage is although DE is very business friendly
* Choose Company Name - can reserve (but not indefinitely) while working on operating agreement but name only official upon transfer of cottage.
* Have Attorney Draft Operating Agreement (hardest part). Immediate involved more people so is harder to do than Springing with founder having final say. Have an heir take the lead as liaison between lawyer and other heirs.
* File Articles of Organization
* Transfer Cottage to LLC and check it is covered by title insurance (if covered purchase endorsement from insurance co. naming cottage LLC as additional insured or even better but more expensive purchase new title insurance with cottage LLC as named insured and ask for nonimputation endorsement precluding denial of coverage following change of ownership in the company). Bill of sale transfers all contents of cottage (personal property) to the company.
* Have members sign operating agreement. Include admission agreement so each heir agrees to be bound by the LLC operating agreement.
* Issue membership certificates in the millions to avoid fractions down the road with the rabbit problem.
* Confirm insurance coverage. Don't accept commercial rates if insurance company tries to apply them b/c of LLC. If so, maintain conventional homeowners' insurance and name company as additional insured. Ensure cottage contents are properly insured as well if they have been transferred to LLC.
* Use a lawyer to draft operating agreement and set up LLC and preferably not from the family. Cost $4500-6500 most likely. Lower for Springing, higher for Immediate. Cost doesn't include tax planning, estate planning or real estate consultation. Have family lawyer check work that LLC fits into estate plan and operating agreement and articles of organization conform to laws of the state where company is established.
#11.
* Put option allows for member to be bought out by LLC at reduced rate and with installments (with prepayment permissible)
* Value of property established one of three ways: stipulated (value at time inherited... locked in), tax assessment, appraisal. Calculation goes value (determined one of three ways) + LLC cash + LLC personal property - LLC debt. Can have multiple appraisals paid for in various ways between LLC and member looking to leave. Require appraiser at least be a Member of the Appraisal Institute (MAI).
* Discussed a 30% discount with 20% purchase price paid up front and promissory note for balance payable over 10 years bearing interest at the prime rate at time of sale. Deeper discount more you view cottage as not as an asset but as place of recreation.
* Interest rate of payoff must meet "applicable federal rate" published monthly by IRS. Author prefers National Mortgage Contract Interest Rate b/c it approximates a mortgage. Offer collateral in form of mortgage or deed of trust which member discharges upon being paid in full.
* Cap indebtedness of LLC at agreed amount so multiple puts (simultaneous or over time) can't happen making payback difficult
#12
* Member managed is direct democracy better with small groups of owners
* manager-managed is representative democracy better with lots of owners
* Keep list of decisions requiring unanimous agreement short
* Management committee with representative from each branch could have great power or could run just the basics leaving "reserved list" items where all members have a say
* Duty allocation of management committee - check writer, maintenance confirmation, scheduler
July 20, 2021
This book is a great resource for any family to read who is trying to decide what to do with the family cottage. Wondering what's the best way to save family interests and avoid hard feelings, or how to avoid family fights and lawsuits? How to handle taxes and necessary repairs? All the answers are in this book. I took a ton of notes and now feel like I understand where I stand with regards to the family cottage. A quick read as well, you could easily finish this book in a day or two. Highly recommended this book.
April 10, 2022
Definitely a worthwhile read for anyone thinking about how best to ensure the long-term survivability of a family property. Lots of good stuff in here. Won't replace getting help from an attorney, but will help create a framework for how you want to think about things, and creates a starting point for family discussions about what everybody really wants out of the family property.
August 7, 2023
This was a must read in preparation of planning for my family’s future in considering precious property that needs generational preservation. Previously tenants in common destroyed the old cottage. Rebuilding lights a fire to protect the lakeside property for multi-generations. My lawyer recommended this read. I read it twice. I am grateful.
August 25, 2024
A Must Read for Anyone with a Family Cottage
Breaks down all the legal stuff with easy to understand examples while acknowledging the emotions of the heirs in this process. If you want to still have relationships with your family members and have a family cottage, please read this book.
Breaks down all the legal stuff with easy to understand examples while acknowledging the emotions of the heirs in this process. If you want to still have relationships with your family members and have a family cottage, please read this book.
January 21, 2021
Good basic guide for families deciding how to manage a jointly owned second home. Good practical advice on different options with their pros and cons.
March 31, 2022
Super helpful!
January 27, 2016
A Guide to Planning for keeping a cottage, cabin, camp or vacation home in the family for future generations to enjoy. Informative and easily understandable even to those like me who have trouble with legalese.
January 9, 2017
Saving the Family Cottage: A Guide To Succession Planning For Your Cottage, Cabin, Camp or Vacation Home. An interesting book describing the formation of a Limited Liability Company to preserve the family cottage in perpretuity. Very good, great info and suggestions. 4 stars.
January 10, 2023
Easily read and digestible plain English. Covers a lot of concerns and threats I was already thinking about and a number that didn't even occur to me or I knew existed. Good information for the next family meeting to kickstart an official succession plan.
November 15, 2015
This is a must read for all families who own a property jointly.
April 30, 2012
Passing a family cottage, camp, or other real estate to future generations carries with it many complications. This is a common problem for which the author has given some good practical advice
April 14, 2015
Very thorough legal advice - answered all my questions and raised essential new ones I never would have thought of.
A must read for anyone sharing a family cottage.
A must read for anyone sharing a family cottage.
November 9, 2015
Perfect How-to guide, if you need to figure out what to do with your family cottage.
October 14, 2017
Really solid, professional guide to owning a family home, and operating it via an LLC structure. Written by a specialist attorney, and regularly updated.
August 13, 2023
Easy to read, well organized, and very helpful for figuring out how to manage [being in the incredibly privileged position of] co-owning a family cottage.
May 3, 2017
Absolute must-read for anyone that shares any type of property with family or will inherit shared property in the future. Cannot recommend this book highly enough! It discusses lots of issues that most people wouldn't even consider and starts the process of cottage succession planning.
Displaying 1 - 21 of 21 reviews