Tax-free transfers – gifting – of the family cottage to future generations via a cottage succession plan is a great opportunity for cottage owners to enjoy considerable tax savings while real estate values are suppressed.

U.S. taxpayers are experiencing a “perfect storm” of opportunity to make tax-free transfers (gifts) of assets such as family businesses, real estate and other wealth from one generation to the next. The gift tax was first enacted in 1932 by the federal government. Over the coming months, we all have what may be the best opportunity since 1932 to gift family assets without a gift tax now and to avoid significant estate taxes later.

Two notable exceptions to the gift tax
Some people are not aware that giving away assets to their children or other individuals, such as the family cottage, may create a taxable event. The “gift tax” referenced above applies to anything of value transferred by one individual to another. There are two notable exceptions to the gift tax. One is an “annual exclusion” which is an exception that allows individuals to gift up to $13,000.00 per year per person without any gift tax consequences. A second exception is an overall gift tax exemption which historically has been limited to $1M during an individual’s lifetime.

The above-referenced “perfect storm” of opportunity for family cottage owners is almost certainly short-term in nature. Several key elements have transpired to create this opportunity as follows:

• At the conclusion of 2010, Congress changed the estate tax exemption which allows for transfers of gifts up to $5M per individual ($10M per married couple) of assets with no federal gift tax.
• Asset values, particularly for real estate including the family cottage, are still significantly depressed resulting in a greater opportunity to gift value from one generation to the other. In the state of Michigan, a recent Supreme Court decision also provides a unique opportunity for parents to gift ownership of real estate to their children in such a way that a transfer can avoid a significant increase in future real estate taxes.
• Certain widely accepted techniques used by experienced estate planning attorneys may also result in individuals transferring 10 to 20 times the $5M or $10M gift tax exemption limit without incurring gift taxes based on certain “leveraging techniques”. Although these techniques can be complex, they are well established and have withstood attacks in the past by the IRS.
• Most transfers that are made to take advantage of the gift tax exemption also provide significant asset protection for the assets.
• Many of our Cottage Law clients with family cottages will be able to enjoy long-term tax savings as a result of taking advantage of this opportunity to make tax-free transfers (gifts) of these legacy assets. Visit the Cottage-Law website at www.Cottage-Law.com for additional information.

An appropriate gifting strategy for the family cottage can save significant taxes
Why act now to create a cottage succession plan? Unless Congress and President Obama take further action to create a new law, the 2010 Tax Act will automatically expire at the end of 2012 (approximately 13 months from now). The current lifetime gift tax exclusion of $5M per person will drop to $1M. The window of opportunity for gifting significant assets from one generation to the next to avoid potential future estate tax is narrowing. Gifting assets removes the asset’s value in the transferors estate for estate tax purposes. As a result, an appropriate gifting strategy for the family cottage can save significant taxes.

Reducing future tax burdens
It is a widely accepted belief among financial advisors and other financial experts that taxpayers should transfer assets that are depressed in value that may be subject to future estate tax liability as soon as possible. As these assets, including the family cottage, begin to recover and grow in value in the future, so do an individual’s current and future tax burdens.

The possible benefits
Whether you perceive yourself as wealthy or not, given the possible benefits of making gifts of assets and the unique opportunity that currently exists to do so, everyone should at least evaluate their potential future estate tax liability and how current gifts of assets may reduce that liability.

Please contact me if you would like to evaluate your own situation to determine whether gifting assets at this time is right for you.

Dan A. Penning

This is how summers have always been. You enjoy the laughter of denials and finger-pointing about who created the latest mysterious heap of sandy wet towels on the cottage porch floor. The children stand shivering from their latest dip in the lake and you silently wager bets against how long it will take for the lake water drops hanging from ends of clumped wet bangs to land on the table.

It’s almost impossible to imagine this won’t be how you, your children and your grandchildren will spend every summer. Although the idea of family cottage sharing seems like a simple process, the reality of real estate laws and rhythms of life and death, along with divorce laws, could prevent your vision of harmonious sharing of the family cottage by future generations from becoming a reality.

The first obstacle facing the future of the family cottage is knowing how your children view their “legal rights” to the family cottage. Some may not be as emotionally attached to the family cottage and due to their own personal circumstances might not want any part of the family cottage. Your children who live in another state might not want any part of the cottage because they don’t use it, or can’t afford it, or they might want to simply “cash out their inheritance.” The risk always exists that they might lose their portion of the cottage during a divorce. These situations, and the right to partition, can be avoided with a solid cottage succession plan, or as some call it, a vacation property succession plan, from The Penning Group.

Cottage Planning Laws

Protect the Family Cottage using Entity Laws

In 1993 Michigan created the Michigan Limited Liability Company Act (LLC). The creation of this Public Act provides the legal framework, through Entity Laws, to change the relationship of owners. Before Michigan created the Michigan Limited Liability Company Act (LLC), many families relied on partnerships, limited partnerships, joint ownership, or co-tenancy as the structure for owning family cottages or other vacation property. Each of these forms of ownership have drawbacks to ownership that can now be addressed with a Michigan LLC because real estate law surprises put the family cottage at risk.

A Cottage Succession Plan
A Cottage Succession Plan created by The Penning Group will be structured under the laws governed by the Michigan Limited Liability Company Act, to keep your current traditions in place while protecting the family cottage for future generations from disagreements, forced ownership changes, family members failing to pay their fair share of ownership costs, etc. Indirect ownership of the family cottage using entity laws also shields and protects the cottage owner from personal liability in the event a person is injured while at the cottage.

Cottage Sharing – It Is Not Easy
Below are seven common cottage-related concerns of those facing “cottage sharing” within their family – concerns which are addressed and resolved within a Cottage Succession Plan created for you by The Penning Group:

• The possibility that ownership of a part of the cottage will pass into the hands of a non-family member as a consequence of death or a divorce.
• What to do if a family member is not able or not willing to meet any or all financial commitments to the cottage.
• The financial impact on the cottage if a family owner files bankruptcy, or a portion of the cottage’s interest is levied by a creditor of a family member.
• How to solve internal conflicts between family member about how the cottage is operated, maintained and improved.
• A family member wants to “cash out” their interest of the family cottage.
• Disharmony and even possible litigation between siblings when parents are no longer around to mediate a peaceful resolution.
• What happens when a child, or children cannot afford to keep the cottage.

Cottage Plan Consultation

You have worked hard to have a special place for your family to go, and we want to help you preserve your investment for future generations. For further assistance in protecting the family cottage, contact me at 231-271-4500 for a free initial consultation to discuss your family cottage and what you already have in place, and whether it will accomplish the future plans you have for your family’s future use and enjoyment of your family cottage or other vacation property.

Have a great summer at the family cottage!

Dan A. Penning

Some would argue that a place is just a place but the people make it special. When it comes to the family cottage, it can be argued “the place” is special, sometimes almost magical, and can transform those who spend time in that place from stressed out, overworked adults back to their carefree days as a child; skipping rocks on the water, swimming off the dock, nursing a sunburn and eating s’mores by the campfire. For most, the family cottage creates a place for memories and traditions to be formed and a safe haven to retreat to for rest, reflection and reminiscing later in life. The family cottage is a constant in an ever-changing world. It’s where experiences can be shared and passed on to the next generation in their purest form.

It’s those intense emotions that fuel the desire to keep the family cottage in the family to preserve “the place” for future generations of “people” to experience and enjoy. Keeping the family cottage requires careful planning, cooperation among family members and a common purpose.

The focus of this writing is to identify the types of ownership forms that exist and can facilitate preservation of the family cottage, including the positive and negative aspects of each form of ownership.

Outright / Direct Transfers of Ownership

A direct transfer of ownership interest from one generation of owners, (i.e. parents) to the next (i.e. children) can be in the form of joint tenants with rights of survivorship, tenants in common or a life estate for the older generation with the younger generation receiving a “remainder” ownership interest in the family cottage. In summary, these forms of ownership involve transfers by deed of some or all of the current owners’ outright ownership to other individuals such as children, grandchildren or others.

The benefits of direct transfers of ownership by one generation to the next are as follows:

• The transfer can easily and economically occur by simply drafting and recording a deed reciting the form of ownership interest transferred.
• Fractional interest or “part interest” can be transferred to assist the transferors with estate tax planning objectives. Establishing fractional interests for the family cottage can provide discounts to lower ownership values in the transferors’ estate.
• Transfers whereby the transferors (parents) retain a partial ownership interest can, in most instances, provide a right for the parents’ continued use and enjoyment of the family cottage during their lifetime.
• Direct transfers can, in certain circumstances, be useful as part of a larger overall long-term care or Medicaid planning process to help parents protect the family cottage from having to be sold to raise proceeds to pay for long-term medical or supportive care expenses.

Direct transfers of ownership can also provide negative consequences. They are as follows:

• If the transfers are done without an overall analysis of estate, gift and income and property taxes, the parents can find themselves with unintended tax consequences.
• Direct transfers of ownership interest can create unintended consequences of exposing the family cottage to the claims of their children’s creditors.
• Direct transfers of ownership can expose the family cottage to claims by the spouse of a child in the event of a divorce.
• Direct transfers cannot guarantee that one or more family members will get along in the future. Disputes can arise without accompanying safeguards to transfer ownership that could result in the whole family being in court and a judge ordering the family cottage sold. In addition, an unexpected economic hardship may arise among one or more of the children owning the family cottage and their wanting to sell their interest in the cottage which can also cause complications for the non-selling individual owners and can ultimately lead to an impasse regarding any resolution of the situation ultimately requiring a sale of the family cottage altogether in its entirety to a third party.

Ownership of the Family Cottage in a Trust

Ownership of a family cottage can also be in a lifetime trust. There are two common trusts for this purpose. In both instances, the transfer of ownership is simple in that it is accomplished by the execution and recording of a deed.

The first type of trust is a revocable living trust. The benefits of this type of ownership are as follows:

• Ownership of the family cottage in a revocable trust maintains the parents’ control of the property during their lifetime. The parents can be the current trustees of the trust during their lifetime, thus retaining full authority to make all decisions on the use, management and even disposition of ownership to a third party in the event of an unexpected need or occurrence.
• The revocable trust is a grantor trust for income tax purposes so any transactions for the family cottage such as payment of expenses and property taxes is reported and deductible by the parents/grantors in the same way as if they owned the family cottage in their individual names.
• If a parent/grantor is disabled, usually a successor trustee is appointed in the trust, who then continues to manage the family cottage without interruption or court involvement.
• In the event of either the grantor parents’ disability of death, the family cottage is not subject to probate administration and that the terms of the trust govern the disposition of the family cottage and asset of the trust.

However, placing a family cottage in ownership of a revocable trust can have certain detriments. These are as follows:

• The full fair market value of the family vacation home will be included in the parents/grantors’ taxable estate if the family cottage is titled in the parents’ revocable trust.
• If the transfer of the family cottage was simply made to the trust and there were no provisions for a “succession plan” the family cottage then remains in the grantors’ revocable trust with no specific direction as to its disposition at the parents’ death. Also, any contributions of funds that may be necessary to pay for expenses of the family cottage may prevent gift tax issues if the title of the family cottage remains in the parents’ revocable living trust
• A revocable living trust is generally not a good option in situations where multiple parties are required to make capital contributions for improvements or sharing expenses for maintenance. If a parent/grantor becomes disabled and a successor trustee is appointed, the successor trustee may not have the discretion to keep the family cottage “alive and well”. If the grantor needs funds for other reasons (for example, health, support, medical treatment and so on), the successor trustee may be forced to sell the family cottage to raise funds for those purposes.
• Creditor protection is limited with a revocable living trust based on the fact that it is a “self-settled trust” whereby the grantors/parents simply transfer by deed ownership to the trust and maintains total control during the trust during his/her or their lifetime. In most states, creditors can pierce through the trust ownership of the family cottage and attach it for judgment liens or other liabilities.

A second type of trust that is sometimes used for ownership of family cottages is a qualified personal residence trust (“QPRT”).

The QPRT is a trust where the grantors/parents make a gift of the family cottage to the trust while essentially retaining an interest similar to a life estate for the term of years of the QPRT. As a result, the parents maintain the use and enjoyment of the family cottage during the QPRT’s term of years. A gift of the interest in the family cottage using a QPRT is less than if the gift were made outright by the parents to their children. The QPRT allows for gifts of fractional interest, thereby reducing the gift tax clause. The QPRT is also a grantor trust for income tax purposes so all deductible costs (i.e., real estate taxes) continue to be deductible by the grantor parents for income tax purposes during the term of the trust. The QPRT can also be a useful tool in minimizing the grantors/parents estate tax liability. Basically, a complete gift of the family cottage from the parents to the QPRT, based on the parents’ retaining the use and enjoyment of the family cottage during the term of the QPRT, allows for a reduction of the amount actually counted as a gift for gift tax purposes. As a result, a complete gift of the family cottage can be made for much less than the fair market value of the cottage and all future appreciation of the cottage can be excluded from the parents’ estate.

The detriments of transferring a family cottage to a QPRT is if a grantor/parent dies during the QPRT term, the fair market value of the family cottage is then accountable in the grantor/parent’s estate for estate tax purposes. That could result in a waste of the gift tax credit. In addition, at the end of a QPRT term, if a grantor/parent survives and continues to occupy the family cottage, the grantor/parent must rent the family vacation home from the QPRT continuation trust or the QPRT individual beneficiaries (i.e., children) at fair rental value. This can also be a benefit in that parents seeking to transfer wealth from their estates to their children can do so by the amount of the rental payments over time. If the family cottage is sold during the QPRT term, the net proceeds of the sale must be reinvested in a qualifying replacement home or an arrangement must be converted to a grantor retained annuity trust whereby the income of the principal of the trust would be paid to the grantors/parents. In addition, similar to a grantor trust, there is little, if any, creditor protection in most states with respect to the family cottage being owned by a QPRT.

Ownership of Family Cottage in an “Entity”

The ownership of the family cottage can also be transferred in an entity such as a general partnership, limited partnership or limited liability company. For purposes of ease of explanation, all references to an entity in this writing will be to a Limited Liability Company (“LLC”). Most of the concepts discussed herein are equally applicable to other types of entities, such as Family Limited Partnerships (“FLP”) or General Partnerships. One caveat is there may be some additional requirements in different nuances relating to ownership of the family cottage in a different entity, but for purposes of this article, reference to an entity as an LLC should suffice for the concepts to be explained below.

In transferring a family cottage to an LLC, there are a number of non-tax and tax reasons usually motivating such a transfer. One consideration in placing a family cottage in an entity is whether or not the formation of the entity was limited in its purpose to establish ownership of a single “personal” asset such as the family cottage fulfills the “business purpose” requirements under some states LLC laws. In addition, another consideration is whether because the nature of the LLC is a personal use of a family cottage is a problem with respect to the inclusion of the family cottage in the grantors/parents estate under IRS Code Section 2036. In the event that transfer of a family cottage to an entity is being done for tax planning purposes, individuals should consult with an attorney to draft the LLC operating agreement in such a way to try and maximize the tax benefits of the transfer.

Another issue affecting the transfer of the family cottage to an entity, such as an LLC, is the management or control of the family cottage. Usually, where grantors/parents transfer the family cottage to an LLC during his/her or their lifetime, the parents maintain management positions of the LLC to make decisions regarding the maintenance, use and other matters affecting the family cottage. If gifts of ownership interest in the LLC are made by the parents to children, the appointment of the parents as managers of the LLC usually avoids a problem with respect to the use and maintenance of the LLC while the parents are living.

In addition, a significant benefit of an entity, such as an LLC, owning the family cottage is creditor protection. The only remedy, for instance, in the state of Michigan and many other states, is that outside creditors can only receive a charging order against the LLC owner’s interest in the LLC and, therefore, cannot become a member of the LLC or force any asset within the LLC to be sold to satisfy any liability of an individual member (owner). A charging order on behalf of a creditor of a member/owner does not give the creditor any management rights, voting rights or other participation rights with respect to the asset of the LLC.

Another consideration in owning a family cottage in an entity, such as an LLC, is protection of ownership with respect to divorced spouses. If gifts of ownership interest of the LLC are made by parents to children, a child can usually keep ownership of the LLC interest separate and distinct from commingling any ownership of the asset with his or her spouse. This fact, together with the fact the LLC operating agreement can make special provisions regarding what happens when a divorced spouse, through court order, attains certain rights against, in the form of a lien, a spouse’s family LLC interest. The LLC operating agreement can be helpful in creating an organized formula with respect to how the interest will be paid for to a divorcing spouse and ultimately extinguish the divorced spouse from the entity.

An extremely important non-tax issue surrounding the transfer of the family cottage to an entity and, ultimately, a succession plan for distribution of ownership interest to succeeding generations, is the operation and maintenance of the family cottage, for instance, who pays, who works, and who does what. Although, regardless of the care taken by an individual to draft a carefully thought-out operating agreement to govern these types of issues for future generations, ultimately cooperation between the individuals will either make such an agreement tenable or, in the event of un-cooperating owners, it becomes more difficult to enforce.

The operation and maintenance of the family cottage usually consists of addressing the following areas:

• Duties, responsibilities and payment for routine, regular maintenance.
• Duties, responsibilities and payment for extraordinary maintenance, such as more capital intensive things such as structural, mechanical or other significant expense.
• Responsibility for payment of regular operating expenses.
• Schedule or personal and rental use of the family cottage.
• Sale of the family cottage and division of tangible personal property.

One significant benefit to using an entity to hold ownership of a family cottage is imposing certain “buy sell provisions” in an operating agreement to govern how, and to whom, individuals sell their ownership interest in the family cottage. These types of buy sell agreements are essentially the same types of buy sell agreements governing the buying and selling of ownership interest in corporations that have been employed by applicable owners of closely held businesses for years. The benefit of buy sell provisions is that various provisions can be inserted into the operating agreement to provide a methodical and fair system in which individuals can offer, and ultimately obtain, the sale of their ownership interest to other LLC owners or, in some instances depending on the terms of the operating agreement, to third parties.

Conclusion

Planning for cottage ownership and succession should not be taken lightly. Without adequate planning various taxes and family disagreements can destroy the future enjoyment of the family cottage. Unfortunately, there is no “cookie cutter” to planning. A family’s goals and personal relationship will influence the ultimate decisions to be made; however, consulting with an expert in cottage law and engaging in careful consideration and a planning process will keep generations of family’s memories intact, and protect the family’s most important asset, the family cottage.

We became owners of a fluffy 20 pound orange and white barn cat name Spike. Spike lives in The Depot- the northern Michigan offices of The Penning Group, and formerly the law offices of Stuart J. Hollander, attorney author of “Saving the Family Cottage – A Guide to Succession Planning for your Cottages, Cabin, Camp or Vacation Home.”

Spike loves to wander around the office and visit the desk of cottage law attorney Dan Penning. He tries to grab a snack of a muffin and just sprawl on Dan’s desk top. He loves to lounge underneath the potbellied stove in the cooler winter months. He gets so close that my husband thought he might catch on fire. With all that fur, how could he possibly be anything but cold. He enjoys greeting clients when they come in and he truly does like to ‘meow’ to say hello. Spike wags his tail out of love. He struts around like he owns the place. I wonder if he isn’t part Ragdoll?

They are the largest breed of cat weighing between ten to fifteen pounds. Did you know that a cat will almost never “meow” at another cat? This is only reserved for humans. Sociable cats will follow your from room to room. They like to check in with you, and monitor your activities throughout the day. The more cats are spoken to, they will speak to you. That definitely is Spike. I can hear him talking when I am on the phone with Dan or Karen, his secretary.

Cats are the sleepiest of all mammals. They spend 16 hours of their day sleeping! Think about this, a seven-year-old cat has only been awake for two years of his life! 95% of all cat owners admit they talk to their cats. I admit I do and my teens and their friends think I am strange.

There are tremendous benefits of owning a cat. They love unconditionally and definitely do not require the care of a dog. They are independent and they use a litter box. They are a perfect pet for a family and if you are a single person. The companionship you have with your cat helps reduce isolation- there is someone to come home to if you live alone. Cats decrease blood pressure and can lower cholesterol. It is also stated that another benefit of owning a cat is that it reduces the mortality rate of heart disease. Owning a feline friend may provide you with fewer visits to the doctor and other minor health problems. It must be why we own three cottage cats. Each one very different from the rest. They are all males- we found them in our family to be the most social. However we have one cat who thinks he is a dog- interesting concept.

Spike became a LOL moment yesterday at The Depot! I am wondering if his ears are twitching in delight as I describe the episode and excitement that took place. There was a mouse who wandered in from the cold and was just making the rounds in the office. Now majestic Spike took one look at the mouse and wandered away. He decided this was really not of any interest to him, and so he went over to the stove and took a long nap. Dan, bewildered by this, thought and said to Karen, “I thought Spike was a mouser.” Karen chuckled, “No, Spike doesn’t do that.” The LOL time came when Karen and Heather, another Penning Group cottage law attorney were chasing this mouse around with a cup. Spike just laid there- all in a day’s work for him. These two ran around the offices chasing this mouse. Oh boy! The mouse was eventually caught and peace was restored to The Depot. And all along Dan thought that Stuart had owned Spike for his expertise at keeping mice out of The Depot. I really had to LOL because it must have been so funny watching Karen and Heather try to catch that mouse. They didn’t probably didn’t see the humor. I decided to investigate after that experience on what makes a good mouser.

Spike I am afraid does not qualify. He just isn’t interested. Cats that have spent a lot of time outdoors are better at hunting than cats that spend time indoors. It also can be difficult to find a good “mouser.” Besides you never know how a cat will react until they encounter a mouse. Spike is definately not interested – and he likes being lazy. He has everything he needs- food, water, and plenty of love. Spike is just not a hunter. I am not sure if he is a bug catcher. Our one cottage cat can see a bug on a wall at a very great distance. He goes crazy, until I get rid of it. Sorry all you bug lovers! I discovered that hunting mice is something that is learned from the mother cat. A house cat or Depot cat doesn’t really get that training because food is plentiful in a bowl, and some have been separated from their mother early on. All I can picture is Morris the Cat with a crown on his head, and a pillow for a bed and food! The richest cat in the Guinness Book of World Records is a pair of cats who inherited $415,000 in the early ’60’s. The richest cat, is a single white alley cat who inherited $250,000. Wow! That would buy you a lot of catnip for your cat!

Well Spike, I think you are splendid! You don’t have to be a mouser to please me. Mice have germs. I guess The Depot will have to in the mean time put out some traps. Maybe the mouse who came in for a visit and to get warm, will inform all the other mice that Spike is big and grand and not to enter The Depot!

Dori

The first being direction.
75% believed that organization and direction in the workplace was a key factor to the work place. They approved of the strong values and ethics.

71% liked the execution of their workplace- meaning they feel their organization is doing things efficiently and well.

70% felt genuinely appreciated at the workplace.

70% believed they were confident in their career and future with this organization.

60% believed in confidence of their managers and the ability of good communication at the work place.

48% stated that the pay is fair for the work to be done. They also felt that the benefit package was better in comparison to others in the work field.

Tom Walsh states that “employees with a common goal overachieve.” “People are happiest when pushing themselves hard -and being challenged by bosses and coworkers to push even harder.”

Every workplace has stress- even the family cottage! The best workplaces know how to take that stress and channel it into positive energy. One very profound statement that Walsh makes is “When workers are focused on a clearly understood mission, they bust their chops happily.” Workers thrive on challenges- it keeps them motivated and they feel connected to a workplace that they feel valued.

At Quicken, the online mortgage firm, they are inspired to be a leader in their area of work and in the company. They also are encouraged to make changes and improve the company. You see they are challenged into leaving the workplace a better place than when they entered in.

My motto at the family cottage- try to make the room you entered a better place than how you found it. This includes attitude, spirit, enthusiasm, and creating an atmosphere of team work. A little tidying along the way makes a difference. If anything goes wrong be part of the solution and not the problem. Work as a team. Put forth quality effort. Top employers focus on staff satisfaction. Employees like to be treated with respect and that everyone is an equal.

Danile Pink, in his popular 2009 book “Drive: The Surprising Truth About What Motivates Us” states while pay is important and can be motivating that “People do better when they understand how their effort contributes to the larger goal.” They want strong leaders who do things ethically and are taking the company in the right direction.

“People like to feel valued for what they do.” Joe Richert, CEO and co-owner of Romulus-based Special Tree Rehabilitation Systems. The top workplaces take the time to do the little things that make a difference and mean a lot to their employees even in these challenging times in Michigan. Richert says “There is nothing magic about being a good employer. You have to work on it every day.”

I spoke with our neighbor today, who has worked at the same company for 20 years. He attended U of M Dearborn in the business program. This is where our son Tucker attends. He works for Plante & Moran, which was given the top special award in Leadership. Yes Michiganders can be positive about their workplace. In other states where Workplace Dynamics conducted similar surveys Michigan employees were more upbeat than other work markets. These included Boston, Cleveland, Dallas, Delaware, Minneapolis, San Antonio and San Jose, California. Houston is the only city that was more positive in the workplace.

Don’t let this be a surprise to you because many Michigan employers know that treating workers right is the right thing to do- it is good business sense. I want to salute all you employers who make a difference to your employees at the work place! This stems from good leadership and a positive attitude to make a difference in your company and to make the world a better place. The Penning Group is that place where employees matter and it shows in their dedication with their clients and community. They keep you informed in the KNOW and offer plenty of ways to keep your family cottage intact.

They are a motivated law firm that takes performance and ethics to a new level. Kudos! Visit their website at www.PenningGroup.com and Cottage-Law.com. You will be very satisfied with their organization and confident in the work they do for you.

Dori Penning

The best memories at the family cottage are the incredible family stories, whether you believe them or not. We vacationed at the “big lake” as my kids used to call Lake Michigan. My husband and I had a wonderful bonfire with our boys and family friends who stayed with us at the cottage on Good Harbor Bay. We all went to bed after saying our goodnight’s, but Dan decided to stay at the water’s edge with our yellow labs Bailey and Callie.

He wasn’t there very long when one of the dogs, Bailey, started to growl. Now you need to understand you can’t see your hand in front of you when the lights are out. It is pitch black and for me it is a little scary. Dan grabbed a large stick and a flashlight and crept slowly with the dogs back to the cottage. There were a lot of rumors of cougar sightings at Good Harbor Bay. We may never know what scared and startled those dogs, but my husband quickly, and I mean quickly, got out of there.

Well, what do you believe? Was it a coyote, a bobcat or a bear? It was not a time to find out. The next morning we never did find any animal tracks to prove my husband’s case, but if you ever visit this family cottage in northern Michigan you might come across all kinds of wildlife. Be prepared.

We have seen a sign at Pyramid Point (the most beautiful place in the whole wide world to me) that tells you how to distract and back away from a cougar. The first step is to back away slowly, and have large sticks and clap them together. It also tells you to pick up rocks and bang them together and then throw them. Now if I hike up this beautiful trail and I see a cougar I’m not sure I would have sticks and rocks in my pant pocket. I definitely do not, and I repeat do not, want to see a cougar up close. I wonder who put that sign there?

Wildlife is very interesting to me. So whatever you believe, enjoy the family cottage and KEEP THE BRIGHT LIGHTS ON IN THE DARK! For all of your fond family cottage memories or tales visit Cottage-Law.com “The Home of Cottage Law” to keep the magic and friendly faces of family and friends alive at the family cottage.

Dori Penning

Conor and The Rose Lizard Club sign

Casey named this club the “Rose Lizards.” We made special friends at the family cottage. These friends are people you don’t see on a daily basis and sometimes they may be just summertime friends. I love these friendships, because you pick up where you left off and never skip a beat in conversation or in sharing a story or two.

Casey was the president and the dues to belong were 25 cents. What a bargain! The meetings took place once a month in June, July, August, and Labor Day weekend. The meetings were called to order and there always was lots of food, great desserts and plenty of fun for all of the members.

Sometimes drop-in guests wanted to belong. It was always up to Casey if he allowed them to join the Rose Lizard Club. Casey never rejected anyone into the club. Casey gave a speech on new business, new members, dues, and old business that needed to be covered. Casey was called Mr. President. It was a real honor to belong to this special club. There were t-shirts made for members. Casey even had his own business cards with a lizard and a rose logo. This was all about celebrating Casey. The gatherings were splendid. We even had a cherry-pit spitting contest. I can’t remember which member won, but it was a terrific effort by all who participated. Casey planned the menu and the dessert.

The Rose Lizard Club was fabulous fun with our summer friends.

Some of the Rose Lizard Club Members

Visit Cottage-Law.com to keep your friends visiting the family cottage. The best friends are the ones who share your footsteps and your journey.

Dori Penning

I grew up with Yogi Bear and he loved pic-a-nics. To Yogi every day ended in a fabulous picnic filled with jelly sandwiches. (My teens do not even know who Yogi Bear was.)

Picnics give you the opportunity to celebrate the nice warm weather with your favorite people. Find a great location at the beach or under a shady tree by the lake. Picnics help you connect with nature.

The rules of a summer picnic are planning fun activities, a menu, and a theme if you desire. You may keep it simple by having easy dishes to pass, grilling hot dogs or burgers, sandwiches, and a dessert or two. Make sure your “picnic-ers” are filled with comfort and have plenty of hydrated drinks – and don’t forget the bug spray to keep away those pesky bugs.

A great family/friend picnic is a sweet retreat at the family cottage. I enjoy the stories and laughter that is shared.

Make sure you stop along the way for all those goodies at the roadside stands. There maybe fresh blueberries, strawberries, cherries for a cherry-spitting contest, summer golden peaches and that wonderful delicious sweet corn. If your picnic goes into the evening, or under the stars, make sure you capture the glorious sunset at the lovely waters’ edge.

For all of your family cottage needs visit Dan A Penning, the best lawyer with the power of “knowhow,” to get the job done at making sure all of your family picnics are spent happily at the family cottage. Happy Picnicing!

Dori Penning

A few days later we discovered that our pets were not the only critters at the summer cottage. We had a family of skunks living under the shed in the back of the family cottage. There were 5 skunks to be exact. A mother skunk who was not happy we had invaded her space and her 4 babies. I did not want her spraying the dogs. We had that happen before to our very first dog Baily, a yellow lab. It was awful -the smell smarts your eyes. I believe we used tomato juice and hydrogen peroxide to get rid of the smell. I absolutely did not want her spraying the boys.

Our nature buff and animal lover Conor was already checking things out, way too close for comfort. We needed to get the skunks out quickly. I, first of all, did not want to adopt any skunks. I don’t care how cute and fluffy they are. We called Critter Control. They came to set up three traps to start with. Now let me tell you this doesn’t happen right away so I had to keep the boys and dogs away from the shed. Easier said than done.

The first two babies were caught in the trap and then the mother skunk. Two more babies to go. It was overnight by the time we had those two captured in the third trap. They were taken away and let go in the woods.

I was thinking to myself any smart woman would pack up teens, cats, and dogs and go back home. But I couldn’t leave the family cottage, besides my boys were waiting for their next adventures and critters to appear.

I do need to let you know that our neighbor across the street from us actually thought we owned these skunks as family pets. He believed we came with them and they were just outside getting some fresh air in their cages. Seriously, did he not think I had enough going on with 2 dogs, 2 cats and 4 teenagers? If you come across critters at the family cottage take time to enjoy them, but be careful about leaving them as permanent extended family members. I did get a real laugh out loud moment when our neighbor thought we owned these black and white beauties.

Visit Cottage-Law.com and believe your family will be secure in leaving your cottage to family members. I don’t know if you can get help in leaving all your wildlife critters at the family cottage. Maybe there might be a way to add critters and family members at the family cottage.

Good luck!

Best wishes,

Dori Penning

Cottage-law stands for:

-C- completeness
-O- for openness
-T- for togetherness
-T- for time spent with loved ones,
-A- for awesome
-G- for generosity
-E- for eagerness.

The Law stands for

-L- look ahead not back
-A- for amazing
-W- for the wow factor

Dan Penning is a lawyer with a positive attitude and an incredible knowledge of the best ways to keep your family cottage intact, so the togetherness of family and friends can last. Dan Penning lives a life full of purpose and goodwill toward others, so surround yourself with a positive upbeat attorney who makes a difference working for you. Achieve your dream at Cottage-Law.com. Visit this website so that you can get a positive attitude and the “Power of Know” when dealing with the laws concerning your family cottage! You will like this, Dori Penning