#2 Real Estate Law Surprise

Real Estate Law Surprises And The Family Cottage

In my current series of blogs, I identify various surprises and what impact they can have on the future of the family cottage.

When thinking about the future of your family cottage, it is important to understand how various forms of ownership of real estate can have unintended consequences.

Real estate laws provide rights and duties attached to different forms of ownership that can be surprising to cottage owners.

The Impact of an Heir's Bankruptcy or Creditor’s Foreclosure on The Heir's Interest In The Cottage.

In short a creditor can seize an interest of an heir in the family cottage in an effort to satisfy a debt.

This interest can be used by the creditor or even sold for cash to a third party. A creditor may also force the sale of a family cottage through a partition action.

Any assets of an individual debtor (someone indebted to a third party) are subject to a creditor seizing an asset through a legal process. That includes co-ownership interests in the family cottage.

In short a creditor can seize an interest of an heir in the family cottage in an effort to satisfy a debt. This interest can be used by the creditor or even sold for cash to a third party. A creditor may also force the sale of a family cottage through a partition action.

With a properly drafted cottage succession plan, terms can be inserted that can make the ownership interest by an heir in the family cottage extremely difficult to seize.

A solid succession plan also include terms that make the ownership interest very problematic or difficult to obtain making the partial interest the last asset of the debtor the creditor would ever want to attach.

Thinking about how to plan for your family cottages future?

Call Dan Penning today!

248-752-6480.