The Family Cabin

Wendy S. Goffe, a shareholder in the northwest firm of Graham & Dunn, has recently published an interesting article entitled Keeping the Cabin in the Family: A Guide to Joint Ownership and Use, 31 ACTEC J. 89 (2005).  Ms. Goffe explains that

the transfer of the cabin is more emotionally loaded than other property transfers between family members is that it typically involves a property with multiple uses, often located in environmentally pristine areas, and tends to embody the family’s values and sense of identity. Cabins are frequently located in desirable areas where the property values have increased at a rate far beyond the family’s other assets. Cabins also represent a large percentage of a family’s financial holdings, posing unique estate tax and liquidity issues for the senior generation. For the junior generation, keeping a cabin in the family poses financial issues, and brings with it the challenge of reaching a consensus among family members as to how to deal with this property—whether wanted, or in some cases, not wanted.

The article outlines “some of the estate planning tools for transferring these properties, followed by a brief discussion of some unusual transfer issues: Cabins in British Columbia and cabins on public land.”  Ms. Goffe notes that “transferring the property is relatively easy, compared to maintaining harmony among its owners following the transfer.”