Joel Mullen asked:
When I speak on the topic of Cabin Trusts I have a goal. And that goal is to prove to everyone in attendance that, while transferring assets to the next generation is easy, the consequences of that transfer can be devastating to family relationships.
Without a Cabin Trust, the family cabin or vacation home is a time bomb of conflict and the fuse is lit when the parents pass away. How long the fuse is and when the bomb goes off depends on the family. With families that have a history of at least some family conflict, we generally have a short fuse and only enough time to run for cover. For families with no history of conflict, the fuse is a bit longer but it is burning. And sadly, for the latter family, when it blows they won’t even know how to duck.
That is why it pains me to hear my clients say, “the kids will just work it out”.
The truth is, this “gift” they plan to bestow on their children is an unworkable situation. A child that uses the cabin every weekend may be doing exactly what his parents intended. However, that doesn’t stop his younger brother from wanting to use it with his family alone. And their younger sister, who lives out of state and rarely gets to use the cabin, may feel she has been given less of an inheritance than her brothers and will eventually pressure them to sell.
And, of course, the brothers will not sell or buy her out. Why would they?
You see how each sibling is right and no one is entirely wrong? You can see how even in the best of families the sense of injustice will cause conflict to arise. The bomb is there and it will go off. It is not a question of if, only a question of when.
However, if simple yet essential planning is done, the fuse never gets lit. If you own a family cabin or vacation home and plan to leave it to your children, remember that no asset is worth the children fighting over. Create a cabin trust that sets down all the parameters and rules and manages “if/then” situations to keep your family safe, happy and together.
Carmela Knavel
When I speak on the topic of Cabin Trusts I have a goal. And that goal is to prove to everyone in attendance that, while transferring assets to the next generation is easy, the consequences of that transfer can be devastating to family relationships.
Without a Cabin Trust, the family cabin or vacation home is a time bomb of conflict and the fuse is lit when the parents pass away. How long the fuse is and when the bomb goes off depends on the family. With families that have a history of at least some family conflict, we generally have a short fuse and only enough time to run for cover. For families with no history of conflict, the fuse is a bit longer but it is burning. And sadly, for the latter family, when it blows they won’t even know how to duck.
That is why it pains me to hear my clients say, “the kids will just work it out”.
The truth is, this “gift” they plan to bestow on their children is an unworkable situation. A child that uses the cabin every weekend may be doing exactly what his parents intended. However, that doesn’t stop his younger brother from wanting to use it with his family alone. And their younger sister, who lives out of state and rarely gets to use the cabin, may feel she has been given less of an inheritance than her brothers and will eventually pressure them to sell.
And, of course, the brothers will not sell or buy her out. Why would they?
You see how each sibling is right and no one is entirely wrong? You can see how even in the best of families the sense of injustice will cause conflict to arise. The bomb is there and it will go off. It is not a question of if, only a question of when.
However, if simple yet essential planning is done, the fuse never gets lit. If you own a family cabin or vacation home and plan to leave it to your children, remember that no asset is worth the children fighting over. Create a cabin trust that sets down all the parameters and rules and manages “if/then” situations to keep your family safe, happy and together.
Carmela Knavel