CHECK-LIST and NOTES

TENETS-IN-COMMON and/or “NEW-AGREEMENT”

Updated: 1 Feb 2008 (v4)

Recommend Including:

0 / 1. / Binding on any clause
0 / 2. / Opt out clauses… (For cabin owners and users)
0 / 3. / Indemnity agreement clause (Insurance, protection, security, guarantee).
0 / 4. / Fiduciary responsibilities agreement regarding “Estate” planning documents needed to spell out “Interest” and what to do with the “Interests” if something happens – others shouldn’t be left wondering what is to be done with someone’s interest. Even if the “Interest” reverts to the original group, like Virginia’s did, it is still important in the likelihood that the cabin has to be dissolved or at the time the cabin is passed to the next generations care, management, use, ownership, etc.
0 / 5. / How to handle the Next Generation Interests. This proves difficult because you have to first clearly identify what the interests are today and then decide on A, B, C, or D, below which each have pros, cons, and consequences. Consider these three ways to handle the Next Generation Interests:
A)  Keep all cabin interests in the third generation, or
B)  Make all interests equal for Terres/Streeter cousins, or
C)  Interests as documented (See legal documents)
D)  Fourth generation cabin use with guideline approval and/or inheritance.
A) B) C) above and below refer to the effort cost that a lawyer would have to devote to drafting a TIC:
A) EASIEST effort/cost: -- keep all control/management/interest/use in this generation. (This option meets Mardy, Patty, and Don’s original request in 2003 to seek an easy and cost effective solution)
B) MEDIUM effort/cost : “Cleanest” -- Pay the cost, and do the work to have equal interests… eliminate owner/use-equity.
C&D) HIGHEST effort/cost: “Challenging” --- folks with one interest and other folks with another type of interest.
Based on the above decision the lawyer can better identify:
E) How to legally spell out the next-generations interest.
F) How to pass interest along (At death unless otherwise sold or gifted.)
G) How to monitor or manage (Why manage? What if someone doesn’t leave their heirs documentation; or, someone has their personal property assessed by IRS or in court/probate; or, someone tries to give/sell/use what they don’t have, etc.)
0 / 6. / How to handle and manage cabin Use & Scheduling
0 / 7. / How to handle cabin general maintenance & upgrades – effort & costs:
o  Considering all things ARE EQUAL, Owner interests equal, identify what and how all folks have a responsibility and accountability and to whom or,
o  Considering all things are NOT EQUAL, Owner and Use/Equity interests, identify what and how the various interest’s have a responsibility and accountability to each other and for cabin use, care, responsibilities, and accountabilities.
0 / 8. / Addressing Liability Issues:
o  Use Permit Holder: How is Use Permit Holder liable to the Forest Service, cabin owners, & cabin users?
o  Need to spell out “Joint several”… and how the cabin owners/users are responsible to the Use Permit Holder. (What is the interest or percentage of each person’s interest in case of a positive or negative distribution? This was requested by the cabin’s Home Owner’s Insurance as well as the Forest Service.)
o  Responsibility/Accountability displaced by Forest Service by having anyone that “uses” the cabin -including guests- sign a wavier to not hold the cabin folks responsible for their use; also, the Permit should be responsibly on displayed somewhere.
0 / 9. / How Decision Making will be handled for: Use, Maintenance, Expenses, Capital Improvements, Responsibilities, Roles, etc.
0 / 10. / How will Disagreements be handled
11. / What’s the Recourse if anyone can’t pay fees, assessments, or breaks guidelines?
0 / 12. / What are the Roles and Responsibilities and who is accountable to whom?
0 / 13. / Prepare a document that can be RECORDED IN THE TUOLUMNE COUNTY RECORDERS OFFICE to protect total cabin family no matter if owner or user. Document must adhere to formatting standards.

C:\Documents and Settings\Owner\My Documents\MOM\CABIN\Agreement - Trust-Work\Agreement_TIC_Checklist-v3.doc