---
url: 'https://www.fmjlaw.com/new-cabin-owner-planning/'
title: 'Attention New Cabin Owners! Planning is Not One-Size-Fits-All'
author:
  name: Georgie Stocks
  url: 'https://www.fmjlaw.com/author/gstocks/'
date: '2020-08-05T14:13:46+00:00'
modified: '2025-09-30T16:40:28+00:00'
type: post
categories:
  - 'Trusts & Estates Blog'
image: 'https://www.fmjlaw.com/wp-content/uploads/2020/08/lake-home-planning.jpg'
published: true
---

# Attention New Cabin Owners! Planning is Not One-Size-Fits-All

Lake homes and cabins are hot commodities while many continue to work remotely and a complete return to the office is nowhere in sight. You might have even read about it in the Star Tribune over the weekend (click [here](https://www.startribune.com/as-minnesota-works-from-home-more-ask-why-not-make-it-up-north/571982112/) to read). The Star Tribune article discusses the high demand for houses on lakes that are within a few hours of the Twin Cities. With all of the unknowns of COVID-19, it makes sense that many families want a place to retreat to, away from their everyday homes.

If you are one of these new property owners, there is plenty that you need to consider when planning for the future of your new lake home or cabin. Even though you may have just purchased the new property, it’s never too early to start planning for the future succession or ownership of the property. Any future plan intending to keep the cabin or lake home in the family may need to address maintenance, cost-sharing and budgeting, use, dispute resolution, creditor protection and other considerations relative to a long-term plan, such as financial resources of the children, family size, marital status, and personal opinions.

Of course, there is no “one size fits all” planning option for the transfer and ongoing management of a cabin or lake property. The following are common forms of succession and ownership options as it relates to developing a future plan for your cabin.

- **Direct Transfer of Ownership.** A direct transfer of ownership is made by conveying an interest in the property directly to the new owners. Some cabin owners simply want to pass the property to their children as equal owners, and let them figure things out from there.

- **Cabin Trust.** A trust agreement is another form of ownership for a cabin property. A trust is an agreement where a grantor transfers property to a trustee to be held, administered, and distributed for the benefit of the trust beneficiaries. There are different types of trusts that can be utilized for a cabin succession plan. Trusts can be either revocable or irrevocable, and there are numerous important considerations that may dictate which form of trust is selected.

- **Business Entity. **The ownership of a cabin or lake home can also be transferred to a business entity, such as a partnership or limited liability company (LLC). The family then implements a partnership agreement, operating agreement, or other such agreement that outlines the control of the property, the succession of the entity interests, and other such important issues.

- **Hybrid Structure**. A structure of ownership that is becoming increasingly popular is the use of a trust and an LLC for the ownership of a family cabin or recreational property, especially where there is a desire to create a legacy property to be enjoyed by multiple generations of owners. The basic structure is that an LLC is formed to hold title to the property. A trust agreement is also implemented and the ownership interest in the LLC is owned by the trustee to be held, administered, and distributed for the benefit of the trust beneficiaries.

***If you would like to discuss any of the above succession or ownership options or have other cabin/lake home planning questions, our [Trusts & Estates](https://www.fmjlaw.com/practice-area/trusts-estates/) group can help. Please contact attorneys [David Ness](https://www.fmjlaw.com/professional/david-m-ness/) at [david.ness@fmjlaw.com](mailto:david.ness@fmjlaw.com) or [Karen Schlotthauer](https://www.fmjlaw.com/professional/karen-a-schlotthauer/) at [karen.schlotthauer@fmjlaw.com](mailto:karen.schlotthauer@fmjlaw.com).***

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