Question about passing cabin down through family

Thu, 22 Aug 2024 04:02:30 GMT

My mom is in the process of purchasing a FS cabin near Lassen, and is also setting up a trust/estate. She asked me a question today that I didn’t have a good answer to, which was how to deal with the cabin in her estate — there are 4 children (who all get along well, 2 from mom’s side, 2 from her husband’s side) , and she’s wondering what others have done in the past wrt passing it down to family. I’m curious if anyone here inherited their cabin, or saw it passed down through family. Did it go to one person who has primary responsibility for upkeep, fees, taxes, etc., or did it go collectively to a group who then shared responsibility? Thanks in advance for the advice!

Response

Sun, 25 Aug 2024 17:52:45 GMT

Jen,

Regarding placing the cabin in your mother's trust, the Forest Service prefers cabins to be placed into a single-asset (cabin) trust and not included in trusts with other assets. The cabin trust document must be pre-approved by the Forest Service. See the Trusts and Multiple Owners webpage under the Resources menu for more information.

Regarding passing the cabin to the next generation, it's quite common for cabins to be owned by multiple siblings, but only one of them can be permit holder. The permit holder carries the responsibility for the Forest Service relationship on behalf of all co-owners. NFH strongly recommends a formal Co-owner Agreement among the co-owners to define the sharing of expenses, use, and transfers if one of the siblings chooses to opt-out of ownership. This can also be accomplished by placing the cabin in a trust where the Trustee of the Trust is the permit holder and all co-owners are listed as beneficiaries of trust. Rules for sharing expenses and responsibilities can also be spelled out in the trust language.

Wed, 28 Aug 2024 05:05:26 GMT

Hi Doug, thanks for your response, it’s very helpful!

Mon, 11 Nov 2024 21:17:44 GMT

Hi, J
I really appreciate your question. I am going through a similar situation right now.

Thank you, Doug, for your answer. It was quite a bit more succinct than was the local USFS's answer, and it clarified the situation and solution for me.

Thank you,
Sherri Bornhoft

Sun, 19 Jan 2025 19:00:52 GMT

In many circumstances, a trust can be a good method for families. However, such documentation should be updated and other alternatives (such as sale to a family member or members) should be considered when it appears that a permit holder/owner could outlive their savings.

Our cabin has been in the family since the 1950s and the second owner/permit holder's life savings were completely exhausted when she lived past 100 with dementia. Before she could receive assistance, the cabin had to be sold for the county's tax assessed value. That, of course, is completely reasonable but it would have been better for the family to make a decision earlier. Just something to consider.
Anita Hupfer
Superior National Forest

Sat, 22 Nov 2025 01:44:08 GMT

I would also like to add a note of clarification regarding the formal Co-Owner Agreement Doug Gann mentioned, because I’m aware of at least one cabin where some co-owners seem to view a “formal owners agreement” as more of a majority-opinion guideline rather than what the term actually means.

A Co-Owner Agreement is a legally binding contract between two or more parties who jointly own a property or asset. It formally outlines:

each owner’s rights, responsibilities, and obligations,

how the shared property is managed, used, and maintained,

ownership percentages and required financial contributions, and

The procedures for resolving disputes or selling an ownership interest.

Such an agreement exists specifically to prevent misunderstandings and disputes by making expectations explicit. It ensures fair treatment for all co-owners and protects the interests of every party—not just the majority.

I hope this is helpful.