Legal Question in Wills and Trusts in Maine
Family Limited Liability Company
My mother-in-law and her sister are co-owners of a vacation home, now worth a little over a million dollars. My mother-in-law has struggled for years to cover her share of the taxes and expenses. Her sister is now encouraging her to set up a family limited liability company or family trust so her share of the expenses will be split between her and her three children. My husband and I have not vacationed there in years as we do not enjoy it, nor do we have the means to share in any way the expenses. My husband's siblings love to vacation there and are currently paying a good portion of the expenses. Are we (my husband and I) in anyway obligated to pay into any kind of trust if we were to choose to be a part of the family trust?
1 Answer from Attorneys
Re: Family Limited Liability Company
You can be made a beneficiary of a trust or Will without knowledge or consent since those documents do not create any present liabilities.
However, if the present use of the property requires enough funding that the ultimate disposition of the property via a trust or LLC requires some participation to essentially "earn" the right to a benefit, then I do not see how you can have your cake and eat it to. If you want to participate you can agree to a present arrangement and pay as are the others, but there is an obvious risk that you will not end up an ultimate beneficiary if you do not.
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