The Family Cottage: “Uncapping” and the LLC

Over the past 30+ years, families have used limited liability companies (LLCs) as a vehicle through which to accomplish their objectives for the family cottage. Through the use of a LLC, families are afforded a ready-made mechanism to facilitate and implement the plan for the transfer, management and use of the cottage, while also providing a measure of liability protection. However, due to recent changes in Michigan law relative to the “uncapping” of the taxable value of residential real property upon certain transfers of such property, the LLC may no longer be the preferred mechanism by which to hold the family cottage where a potential “uncapping” of property taxes is a concern…….

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Written By: Scott D. Harvey

August 20, 2015 In: Financial Planning Perspectives Comments (None)