It’s that time of year…kids are back to school and if you are a family who is fortunate enough to have a family cottage, lake house or beach house, you may be getting ready to close it up for the season.
The family cottage undoubtedly provides numerous memories for your family. Whether it be boating, fishing, hunting, swimming, or just time away, these memories are cherished. Every family wants to pass on these memories to their children and their grandchildren. However, many times problems arise when more than one person owns or inherits property.
With proper planning there are ways to make sure any potential problems are avoided. One way to allow for more harmonious ownership is by creating a Family Cottage LLC. A Family Cottage LLC will change the way the property is owned. A separate agreement can lay out the ground rules for all the owners.
An LLC doesn’t have to be complicated and there are many reasons why it might help:
- An LLC can protect owners from liability
- An LLC Operating Agreement will dictate the rules for each member of the Cottage LLC
- When time comes for one owner to sell or transfer her/his shares, a cottage LLC allows for flexibility and minimizes the risk of a forced sale
Make sure your family cottage continues to provide happy memories that will last for future generations.