National Forest Homeowners

NFH Facts

A Cabin is personal property, not real property: it does not include the permit.

Estate Planning with a Permitted Cabin in Mind

NFH LogoWHAT IS THE CABIN: THE CONSEQUENCE OF NOT OWNING THE LAND…

  • Cabin is personal property, not real property: it does not include the permit
  • Permits allow the cabin to sit on its lot. They are not transferred: you or the new owner has to apply for a new one
  • No deeds to transfer the cabin: bills of sale instead
  • There is varying expertise among permit administrators when transferring to trusts

HOW A CABIN GETS TRANSFERRED

Transfers during the owner’s lifetime

  • By sale; new permit for new owner
  • By gift; new permit for new owner
  • By transfer to living trust: new permit for trustee of trust

Transfers after the owner’s death

  • By will (testate succession): probate required and new permit for probate administrator, then new permit for person who inherits
  • No will (intestate succession); probate required and new permit for probate administrator, then new permit for person who inherits
  • Joint tenancy with right of survivorship: maybe probate required, often no new permit issued as the survivor is still on the permit, but if not, new permit required
  • Through living trust’s provisions for after death: no probate and possibly no new permit

DOCUMENTS TO TAKE TO ATTORNEY TO PERFORM ESTATE PLANNING:

  • Permit
  • Tax bill for cabin
  • Existing estate planning documents (wills, previous trusts)
  • The Forest Service documents attached to this outline!
  • Optional: the number 1-800-669-9971 if your attorney has a problem…

REMEMBER TO CHECK BACK ON THE RECOMMENDED LANGUAGE AS THE FOREST SERVICE IS WORKING ON THIS ISSUE

ISSUES THAT CAN ARISE:

  • How will a trust fund the expenses of the cabin?
  • If a non-cabin type trustee is appointed, will he/she interpret the law such that a non-income producing property must be sold? (language to add in the trust to prevent this)
  • Think about how the successors will share the cabin and its upkeep. Should you designate only one person to be responsible, and who?
  • Permits, by regulation, cannot be held by a commercial enterprise. What happens when a trust has as a provision a bank as a back-up trustee?? (FS is thinking about the one…)

© 2007 NFH