For so many Wisconsin families, summers up north are a source of fun, family bonding, and priceless memories. It’s only natural to want these same memories for future generations of your family. The family cabin, cottage, or whatever name it goes by, are where these memories are made. As the summer ends and you prepare the family cabin for the coming winter, have you prepared it for the long-term future too?
Ask yourself:
1) What is your goal? Is it to retain ownership of the cabin in your family, to assist your children in buying their own cabin, or something else?
2) Have you talked with your family about your wishes? What do they want?
3) Does your plan accomplish your goal?
4) Does your plan anticipate potential disputes and proactively address them?
Without a plan, family cabins are often sold, especially if children can’t agree or if equity in the cabin is needed to provide equal distributions to children. Another common result in the absence of a plan is outright co-ownership among siblings. This presents an entirely different set of problems. Disagreements commonly arise over responsibility for financial upkeep, chores, shared use, and when and for how much to sell the cabin for.
These situations, although common, can be proactively addressed by creating a plan that accomplishes your goals, minimizes potential areas of disagreements, and takes into account your financial situation and your family’s wishes. A thoughtful plan should consider:
- Who will ultimately make decisions about the property?
- How will expenses be divided?
- What happens if someone wants to sell?
- How will disagreements be resolved?
- Is there a plan for eventually transferring or selling the property?
Whatever your goals and financial situation, having a plan in place helps ensure the family cabin is a continued source of family unity and joy, not one of headaches and hard feelings. Before you lock up for the season, take a moment to plan beyond next summer and give your family the gift of preparedness.