Do you have a family cottage in Michigan that you want to keep in the family after your death to be used by your children?
A limited liability company (LLC) can be a good way to keep the cottage in the family. Essentially, the LLC is created and the cottage is transferred to it. At the time of death the membership interest in the LLC is then distributed to the children.
Through the LLC’s Operating Agreement, restrictions can be in place that will keep the cottage from ever being distributed to an individual outside of the children or descendants. Doing so protects the cottage from being exposed to claims of children’s creditors or spouses. Additionally, the Operating Agreement includes procedures for assessing costs of repairs and maintenance, who is to use the cottage went, et cetera.
For more information on having an LLC created for your Michigan cottage, please contact us.
