Shared Ownership of Family Cottages, Part Two: Ownership Structures for Shared Family Property

Once a family has made a decision to pass the ownership of family cottage or vacation property to the next generation, you will need to give thought to how that ownership will be held. There are basically three options for the form of ownership and use of a cottage by multiple households of a family: co-tenancy, a trust, or a limited liability company (LLC). Each one has advantages and disadvantages, which means that each family will have to weigh these and decide what form makes sense for them. And sometimes, one of the most important factors that affects the ownership structures is the property tax rules. 

For the insights and guidance on making a decision about shared ownership of family cottages, see Part One. For insights on creating a governance agreement for the shared property, see Part Three.