[WSBARP] Family Cabin Ownership Structure

[Teunis J. Wyers]

Here are some "family cabin" resources. These references are somewhat
dated, but provide lots of food for thought.

My general advice about this topic is that you will need to be working with
people who are truly dedicated the project, and willing to work hard to
make it happen. I am of the Baby Boomer generation, and my observation of
the next generation is that in general they are used to having things done
for them and given to them, and that they rarely are willing to contribute
what it takes to make a project like a family cabin work for the benefit of
all.  You run the risk of spending thousands of your client's dollars
setting up something that spoiled children will allow to fail.

On Tue, Dec 22, 2015 at 4:36 PM, Nick Bergh <nick at gnbergh.com> wrote:

> Happy Holidays!
>
>
>
> I have a client interested in setting up an ownership structure for a 5th
> generation family cabin.  There are enough family members so that a
> co-tenancy would be unwieldy. In addition, the client wants to reduce the
> possibility that less interested members of the family could force a sale
> of the cabin down the road in order to realize on its value.
>
>
>
> I have considered using an LLC or a non-profit corp/homeowner’s
> association structure. The cabin would be donated to the LLC, and
> membership would be open to all family members. To discourage profiteering,
> a low entry price would be set, unrelated to the value of the asset, with
> the same amount payable to any withdrawing member. The property could not
> be sold without a unanimous, or near unanimous vote.
>
>
>
> Use would be determined by lottery. Members would be jointly responsible
> for upkeep, utilities, taxes, reserves and other recurring expenses,
> probably based on frequency of use. Improvements would require a
> substantial vote, but not as high a threshold as approving a sale.
>
>
>
> Management would be elected by the members, with set terms. Regular
> membership meetings would be held to elect management and approve budgets.
> More detailed rules would be established by bylaws or rules established by
> management and/or member approval.
>
>
>
> I would prefer to use the non-profit corp/homeowners association rules as
> the client is already a  member of two associations and is familiar with
> the workings. However, I am concerned that the membership structure limited
> to family members might not be allowed under the non-profit statutes, or
> that the use of the HOA statutes would not be allowed for governance of a
> jointly owned single structure.
>
>
>
> I have not seen an LLC structure used for this type of organization, and
> most of the LLCs I have seen have a far more rigid structure and are
> designed to operate a for profit business, although I understand the LLC
> statute allows for lots of flexibility, and an operating agreement could
> likely be tailored to meet the needs of the client. I believe
> administration of this organization as an LLC would require more effort and
> expense than would a non-profit corp.
>
>
>
> Any thoughts or experiences on the best structure for this organization,
> LLC, non-profit corp or otherwise,  would be greatly appreciated.
>
>
>
>
>
> ________________________
>
> Nick Bergh
>
> Law Office of G N Bergh
>
> 2006 South Post Street
>
> Spokane WA 99203-2049
>
> ph 509-624-4295  | fx 509-344-1844
>
> nick at gnbergh.com
>
> www.gnbergh.com
>
>
>
> _______________________________________________
> WSBARP mailing list
> WSBARP at lists.wsbarppt.com
> http://mailman.fsr.com/mailman/listinfo/wsbarp
>



-- 
Teunis J. Wyers @ Wyers|Wyers, Attorneys
Oregon Office:
     216 Columbia St. - P.O. Box 917
     Hood River, OR 97031
     (541)386-2210/610-1520 (fax)
Washington Office:
     218 E. Steuben St. - P. O. Box 421
     Bingen, WA  98605
     (509) 493-2772/493-2406 (fax)
Email:  teunisj at wyerslawpc.com
Web:  www.wyerslawpc.com

NOTICE:  This email (including any attachments) is covered by the
Electronic Communications Privacy Act (EPCA), 18 U.S.C., Sec. 2510 - 2522,
is confidential and privileged.  This email is solely for the personal and
confidential use of the recipient(s) named above.  Receipt by anyone other
than the individual recipient(s) is NOT a waiver of attorney-client
privilege.  Any violation of the ECPA is subject to the penalties stated
therein. If you have received this message in error, please notify me
immediately by reply e-mail and immediately delete the original message.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20151222/e74ca159/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: Cabin ownership book reference.doc
Type: application/msword
Size: 19968 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20151222/e74ca159/Cabinownershipbookreference.doc>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: Cabin Ownership.pdf
Type: application/pdf
Size: 283169 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20151222/e74ca159/CabinOwnership.pdf>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: Cabin ownershp publication.pdf
Type: application/pdf
Size: 76871 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20151222/e74ca159/Cabinownershppublication.pdf>