If you want to preserve a family vacation home for future generations, two common tools are:
- A cabin trust
- A limited liability company (LLC)
Both can work — but they serve different purposes.
Cabin Trust
A trust:
- Holds legal title to the property
- Establishes detailed usage rules
- Avoids probate
- Provides centralized management
- Controls inheritance structure
Best for families focused on long-term legacy planning and structured governance.
LLC
An LLC:
- Treats family members as owners (members)
- Allows operating agreements for usage and expenses
- May provide liability protection
- Offers flexibility for transfers
Best for families who want operational flexibility and shared management.
Key Differences
| Cabin Trust | LLC |
|---|---|
| Focus on estate planning | Focus on ownership structure |
| Avoids probate | May still require estate planning |
| Long-term governance built in | Requires careful operating agreement |
| Stronger legacy control | More flexible for buyouts |
Which Is Better?
It depends on:
- Family dynamics
- Tax goals
- Asset protection concerns
- Long-term vision
Sometimes families use both.
