Keeping the cottage in the family

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Dune grass and footprints in the sand at sunset

For many Michigan families, the cottage matters more than any account balance. It is also the asset most likely to cause friction when it passes to the next generation: several owners, shared costs, different ideas about who uses it when.

Questions to settle early

  • Who will own the cottage, and in what shares?
  • How will taxes, insurance and repairs be paid?
  • How is time at the cottage scheduled?
  • What happens if one owner wants to sell, or cannot pay their share?

Families often place the property in an LLC or a trust with written rules for these questions, sometimes with a fund set aside for upkeep. The right structure depends on the family, the property and the tax picture, so it is worth a careful conversation.

The best time for that conversation is a quiet summer evening, long before anyone needs the answers.

This article is general information, not legal advice, and reading it does not create an attorney–client relationship. Lake Effect Law is a fictional firm on a demonstration site.

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