Call Us Today At 608.829.2525

Horn & Johnsen

  • Home
  • Estate Planning
    • Wills
    • Trusts
    • Medicaid
    • LGBTQ
    • Legal Concept Videos
    • Events
  • Practice Areas
    • Probate
    • Guardianship
    • Business Law
    • Real Estate Law
    • Legal Concept Videos
    • Events
  • Attorneys
    • John Horn
    • Dera Johnsen-Tracy
    • Events
  • Videos
  • H&J Blog
  • Testimonials
  • Contact Us
Free Estate Planning Book

Cabin Trusts – Let’s Keep It In The Family!

Cabin Trusts – Let’s Keep It In The Family!

by HJ / Wednesday, 24 September 2014 / Published in Horn & Johnsen News

In Wisconsin, I have many clients who own a family vacation home “Up North”.  In fact, within my own family, we have a lovely cabin in Vilas County where we spend many relaxing holiday weekends together.  Therefore, I personally understand the importance of planning to ensure a treasured family cabin can remain within the family following the death of a parent or parents.

Within a revocable living trust, a popular and very effective option is to create a separate “Cabin Trust” that will spring into existence upon the death of the trustor(s) (note that the “trustor” is the person who creates the trust).  The trust can direct that the family vacation home will then be distributed to this Cabin Trust along with a specified cash amount to provide for the upkeep and maintenance of the property, which should include, but not be limited to, real estate taxes, insurance, improvements, and general maintenance of the property, for a certain period of time.  The trust should also designate the beneficiaries (usually the trustor’s children) who may share in the use and enjoyment of the property.  If a child dies, then his or her right to such use and enjoyment can pass to that child’s descendants.

In addition, the trust should name a trustee of the Cabin Trust who will be responsible for the general management of the property and trust funds.  When the trust funds run out, the trust should provide that the adult beneficiaries of the trust will then become responsible for paying their fair share of the expenses.  If a beneficiary fails to pay his or her share, then such beneficiary has lost his or her right to the use and enjoyment of the vacation home.

Finally, the trust should designate the circumstances under which the vacation home can be sold.  Often, parents require either a majority or a unanimous consent among those children who have met their financial obligations before the property can be sold.  Parents also often provide within the Cabin Trust that their children will have the first option to purchase the vacation home from the trust at a discounted price.

Overall, a well-crafted Cabin Trust can be a wonderful tool to keep the vacation home in the family and to eliminate potential future family disputes!

Source: New feed

Tagged under: Charging Fees

What you can read next

Texas Court Strikes Down Obama Overtime Rule
special-needs-trust spelled out on keyboard key
What is a Special Needs Trust?
The True Value of a Turtle Bell

Recent Posts

  • dictionary picture of probate meaning

    Help Your Heirs Avoid Probate With a Living Trust

    Probate can be an extremely time consuming and ...
  • I Don’t Have Children – Do I Really Need an Estate Plan

    I Don’t Have Children – Do I Really Need an Estate Plan?

    Many people who have no children wonder whether...
  • person jumping up steps to the end

    Steps to Prepare for End of Life

    Many people neglect to take all of the necessar...
Horn & Johnsen SC - Estate Planning Center of Wisconsin

Estate Planning
Guardianship
Business Law
LGBTQ

Probate
Medicaid
Real Estate
Special Needs

APPOINTMENT LOCATIONS

Madison
Waukesha
Baraboo
Brookfield
Sauk City
Janesville

DOWNLOAD PERSONAL INFORMATION QUESTIONAIRE

SUBSCRIBE TO HORN & JOHNSEN

We respect your privacy and take protecting it seriously.

OFFICE LOCATION

Horn & Johnsen SC
8446 Excelsior Drive, Suite 102
Madison, WI 53717
P. 608.829.2525
E. info2016@hornjohnsen.com
Sitemap

Copyright 2019 Horn & Johnsen. Powered by Digital Fitness.

TOP