What Is a Michigan Cottage Trust?
Preserving Family Traditions with Smart Planning
In Huron County, cottages and lake homes aren’t just properties—they’re part of the family story. A Michigan Cottage Trust is a legal tool that allows families to pass down vacation homes in a way that minimizes conflict, protects the property, and keeps those cherished memories going for generations.
Why Consider a Cottage Trust?
Creating a trust means the ownership of your cottage is transferred into a legal entity that you design and control. It allows you to:
Avoid Probate: A trust keeps your cottage out of the probate process, saving your family time, legal fees, and stress.
Maintain Property Tax Benefits: Proper planning can help avoid a reassessment (or “uncapping”) of your property taxes when it’s passed down to your children or close family members.
Clarify Ownership & Use: You can outline how the property should be used, maintained, and shared—removing ambiguity and reducing the chances of disputes.
Prevent Forced Sales: Unlike properties jointly owned outside of a trust, a cottage in a trust is protected from court-ordered sales due to disagreements.
Stay Flexible: You retain control during your lifetime and can build in provisions that evolve with your family’s needs.
Things to Keep in Mind
Every family and every cottage is unique. That’s why it’s important to work with a Michigan estate planning attorney who understands both the legal side and the emotional ties involved. A well-structured cottage trust can protect your legacy—but only if it’s done right.
If you’re thinking about creating a cottage trust or just want to explore your options, I’m happy to connect you with trusted local professionals who can guide you through the process.
