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The Family Camp
July 6th, 2021
As summer kicks into high gear, many Mainers are spending more time at the family camp. Whether you call it a camp, cottage, or cabin, the place where your family comes together is special, and you might be thinking about what will happen to it in the future. Many people choose to create a family camp trust which can provide a structure for future ownership, set up the rules ahead of time, and promote family harmony.
A trust is created when an individual transfers property to another party (called a trustee) for the benefit of one or more beneficiaries. Family camp trusts are typically our most customized type of trust. The camp trust can be revocable or irrevocable during your lifetime. It gives the trustee powers to manage the property and specifies the rights of the beneficiaries. It can include specific rights for use of the property or can allow the trustee to make rules with or without the participation of the beneficiaries.
A family camp trust may provide that each beneficiary’s share of the property automatically passes to that beneficiary’s children. Typically, beneficiaries cannot sell or give away their interest in the property without the consent of the other beneficiaries. This provides some protection from creditors and in case of divorce.
If you are interested in discussing whether a family camp trust is right for you, please reach out to us. We would be happy to discuss the planning strategies available for your family’s favorite place.