Short-Term Rentals of Vacation/Residential Property Are Under Attack in Michigan

Short-Term Rentals of Vacation/Residential Property Are Under Attack in Michigan

You are sitting on your deck overlooking the lake, having a beverage on a beautiful summer Saturday afternoon in the middle of July when suddenly, next door, at the neighbor’s cottage, you notice activity. A caravan of vehicles with young adults begins arriving and unloading bags and provisions (mostly kegs of beer) and carrying their supplies into the cottage. An hour later, thumping music blares next door with 50 young people drinking beer and whooping it up on the beach in front of the cottage. You ask a young lady who they are and she happily replies, “We’re your neighbors for the next week. We rented the cottage from my aunt and uncle. It should be a blast!”

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Profiles of Cottage Law Families

Profiles of Cottage Law Families
As I reflect on the past year and the substantial number of families I assisted with planning for their cottages, the diversity of these families and their cottage situations was notable.

One stereotype I have encountered by some folks in response to my social media postings is that only people who are the “privileged few” or “rich” need to worry about cottage planning. The various responses to my posts portray a real sense of class warfare. For example, in a recent article where I explained planning strategies and opportunities, I received comments like, “… It must be nice to have a cottage to worry about, I have a hard time just paying rent on my apartment …” and many more to that effect.

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Planning for the Future of the Family Cottage

Planning for the Future of the Family Cottage

This article was originally published on September 26, 2016 by the Front Street Foundation (http://frontstreetfoundation.org/planning-for-the-future-of-the-family-cottage/).

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How Would You Like to Spend Your Vacation with Your Ex-Daughter-In-Law (and Her New Boyfriend)?

How Would You Like to Spend Your Vacation with Your Ex-Daughter-in-Law

I have written numerous articles about the benefit of planning for the succession of ownership of your family cottage in order to avoid non-family members from obtaining ownership rights to use the family cottage in divorce proceedings.

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Clarification On New Michigan Tax Law’s Impact On Cottage Planning

Clarification on New Michigan Tax Law

I previously wrote an article titled “New Michigan Property Tax Law Does Not Solve Common Ownership Problems.” In response to that article, I received several inquiries from individuals who had previously established an LLC as part of the succession plan for their family cottage and had terminated that LLC after the new Michigan law went into effect. The strategy behind terminating the previously formed LLC was that real property titled in the LLC did not qualify for the new exemption under the Michigan law. But that’s only half the story.

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