Estate planning can be complicated. Knowing this, I have always believed it was important to break down the process so my clients have a clear understanding of what we are trying to accomplish in drafting and implementing an effective estate plan.

For the past few years, I have explained to clients that whether a family is worth $5000.00 or $50,000,000.00 the objectives with any estate plan are the same. These objectives are:

1) Avoid probate (if desired)

2) Pass assets to the next generation or charity

3) Plan for incapacity

4) Avoid or reduce estate taxes to the extent desired or possible

If we accomplish these four tasks most estate planning attorneys view their job as complete.

Now, every estate attorney has their own definition of what they are trying to accomplish, but again, it is my view that these four elements help my clients understand the process.

In dealing with my clients who own a family cabin, it quickly became evident that one essential element was missing. What is that element? Preserving family relationships after a loved one passes. Since this 5th element of estate planning has been missing, I believe the estate planning community, me included, owes family cabin owners an apology.

For years, too few of us have taken seriously our role as counselors as well as attorneys. We all know “that family” who fought over mom’s soup spoon or dad’s grandfather clock and I am not apologizing for that. Even the best estate plan does not account for childishness. However, there are certain family assets, a cabin among them, in which we should have recognized the potential for family conflict but did nothing to prevent it. Don`t forget to look into this website to find additional info.

The family cabin is special and should not be treated like every other family asset. It is amazing to me that business succession plans have recognized and dealt with family conflict for years but estate attorneys, by and large, have not recognized that multiple ownership of a cabin presents the same problems for families as passing down a family business.

Just like a family business, a cabin is fraught with potential conflict over

• taxes
• expenses
• equity
• and buy-out provisions.

Yet the vast majority of estate attorneys have treated the family cabin just like any other family asset. The truth is, the family cabin is not like any other asset. It must be dealt with not only to avoid conflict after a loved one passes, but also to allow the cabin to be used and enjoyed for the purpose our clients intend.

The family cabin can be a great source of joy for the average American family but if estate attorneys continue to treat it like any other family asset they invite the kind of conflict that families cannot mend.

Incorporating a simple cabin trust can avoid the conflict we as planners should anticipate. The whole point of any estate plan is to make it easier for families to deal with the passing of a loved one. Failing to deal with it means we cause problems rather than solve them.