Central Minnesota families have long treasured their lakefront cabins and waterfront homes — but what happens when it’s time to decide whether to pass it down or sell? That decision is emotional, practical, and deeply personal.
If you’re facing this question in places like St. Cloud, Little Falls, Brainerd, or Alexandria, you’re not alone. Generations of Minnesotans have built memories at the lake — fishing off the dock, evening pontoon rides, and watching sunsets reflect off the water. And now? The kids are grown, the upkeep is mounting, and decisions need to be made.
Here’s what to consider when deciding whether to keep your lake home in the family or put it on the market.
The Emotional Pull: It’s More Than Just a Property
Let’s be honest — this isn’t just about real estate.
Your lake place may represent:
- Decades of tradition summer memories, holidays, friends and family vacations
- A safe retreat for children, grandchildren, friends and extended family
- A legacy you imagined staying in your family’s name
Letting go isn’t just about dollars — it’s about identity. And it’s okay to acknowledge that upfront. Many families struggle with guilt, anxiety, or worry about what the “right” thing to do is.
Tip: If multiple heirs are involved, hold a family meeting to understand who values the property, and who may not.
The Case for Keeping the Cabin in the Family
Keeping your lakefront property can be incredibly rewarding if:
- Family members want to use and maintain it
If your kids or siblings are aligned on preserving the home and willing to contribute financially or physically to its care, this could be a meaningful generational gift. - You see it as a future rental or investment
Turning the property into a short-term vacation rental (Airbnb or VRBO) may help fund maintenance and taxes. Just check your county’s zoning laws and licensing rules first. Here’s a great starting resource from the MN Dept. of Revenue. - You can use estate planning tools wisely
A cabin trust or LLC structure may help your family manage usage, costs, and future inheritance without infighting. Speak with an estate planning attorney familiar with Minnesota real estate law.
The Case for Selling the Lake Home
There are good reasons many Central Minnesota families choose to sell their cabin:
- Maintenance is becoming a burden
Roofs, docks, septic systems, and shoreline management are costly and time-consuming — especially if the family lives out of town or lacks the physical ability. - No one is using it regularly
If the property sits empty 11 months out of the year, it may no longer serve its intended purpose. I had a lake home that I sold recently just outside of St. Cloud. The couple loved their lake home, but their children were grown and busy with their new lives. This couple loves to snowmobile and use their side by side and they had to trailer their toys to get to any trails to ride on. They weighed everything and realized that, while they enjoyed the views, they used very little else of what the lake life had to offer. They decided to sell an purchase a home near the trails, but still big enough for family and friends to come and stay with them. - You want to cash in on strong market value
Waterfront homes — especially in the Brainerd Lakes Area, Cushing/Lincoln Lakes Area or Alexandria’s Chain of Lakes — continue to see strong demand. Selling now could maximize capital gains and help fund your next chapter (retirement, downsizing, etc.).
Curious about current lakefront market values?
Check out Zillow’s Central MN waterfront listings or get a local valuation from a licensed expert.
Downsizing? Don’t Forget These Financial Considerations
If you’re thinking about selling your lake home to downsize, here are key questions to ask:
- What are the tax implications?
If this has been your primary residence for 2+ years, you may qualify for the capital gains tax exemption. If it’s a second home or cabin, that exemption likely won’t apply. More info here via the IRS. - Have you factored in inheritance costs?
Transferring the home to family may trigger gift or estate taxes. You may want to consult a Minnesota estate attorney or CPA before making a decision. - Would selling simplify your lifestyle?
Freeing yourself from maintenance, taxes, and insurance might allow you to travel, move closer to grandkids, or simply enjoy life more freely.
What’s the Right Answer?
There isn’t one.
Some families decide to keep the cabin with a rotating schedule, shared calendar, or ownership agreement. Others sell and use the proceeds to make new memories elsewhere.
Here’s a helpful framework:
| Factor | Questions to Ask |
|---|---|
| Family Interest | Do your kids want it? Are they capable of maintaining it? |
| Financial Readiness | Can you afford the upkeep without stress? |
| Use Frequency | Is it being used enough to justify keeping it? |
| Emotional Value | Will selling bring more peace or more regret? |
Need Help Weighing the Pros and Cons?
You don’t have to figure this out alone.
I’m Paula Quinn with eXp Realty, and I’ve helped many families in the Central Minnesota area — including St. Cloud, Little Falls, Brainerd, Alexandria and other local areas — tackle this exact situation.
Whether you decide to keep your lake home, sell it, or explore creative legacy planning options, having a trusted local expert can make all the difference.
👇 Want a free consultation on your lake home’s value or options?
📞 Click here to connect with me today Paula Quinn Homes brokered by eXp Realty.
