5 Reasons Why You Need an LLC and Property Management Agreement for Your Family Hunting Land
A chill is in the air and leaves are falling. It’s the time of year hunters in Minnesota anxiously await opening day and their first trip up north for the season. For some families, it’s also the time of year when they get into arguments with their siblings, parents, friends or extended family members over their hunting properties without a property management agreement.
Many Minnesotans own hunting land with their extended families and friends. Often, this land has been in the family for generations and was passed down through a will. Other times, siblings and friends purchase land together to make ownership more affordable. However you’ve come to own your hunting land, it can become a bone of contention that causes occasional disagreements or even outright warfare.
A Simple & Legal Solution
Fortunately, there’s a simple legal solution that can protect everyone’s rights as landowners while outlining clear expectations and responsibilities. Here’s why setting up your family’s hunting land as an LLC—a Limited Liability Company—could be a smart move.
1. An LLC protects the rights and interests of you and your family.
An LLC is a legal, corporate structure that would name you and your family members as ownership partners of your hunting land. Think of it as a formal agreement or contract where landowning family members become partners. Every partner gets a say in what goes into the LLC agreement. An LLC can also reduce your family’s personal liability should an incident occur on the property.
2. A property management agreement also makes succession planning clear and easy.
Creating a property management agreement to go along with your LLC can explain what happens when an owner passes away. The agreement can stipulate that the deceased owner’s share gets split equally among remaining owners or passed down to a child or other family member. You can also include directions for when and how owners can sell their shares while still alive. Having these directions in writing makes the transition go much more smoothly and amicably.
3. An LLC and property management agreement reduce or eliminate disputes over hunting land use.
These tools can stipulate who can use the land, how often they can use it, and even who they can bring along. By outlining these rights clearly, you can eliminate many potential arguments over use of your land, including over how many times your nephew can bring his 20 buddies up for a weekend.
4. Set clear expectations for hunting land use.
Your agreement can outline how owners can use your family’s hunting land, too. Don’t want your brother’s kids ruining the land with their ATVs? Ban ATV use on your land. Want to build deer stands for you and your son or daughter? Add a clause to your agreement that allows for this type of construction on the property. Being clear with these expectations can help prevent future disagreements.
5. Straightforward maintenance and repairs.
There’s always someone who doesn’t pull their own weight when it comes to maintenance and repairs. If the work and costs of maintenance and repairs seems to always fall on your shoulders, create a plan for dividing the labor and costs more equitably. You can even outline responsibilities for the owner who is the first up to the land at the start of season and what needs to be done if you’re the last one to use the land at season’s end.
LLCs and property management agreements aren’t just for businesses or rich hunters. They are valuable legal tools for anyone who owns hunting land together with other people. To learn more about how to help you manage your hunting lands, contact Morphew Law Office today.