Inheritance
Click here for Top Ten Discussions. CLICK HERE for Q & A Homepage
Receive Free Rental Owner Updates Email:  
MrLandlord Q & A
     
     
Inheritance (by CJ [FL]) Sep 19, 2022 10:45 AM
       Inheritance (by Hoosier [IN]) Sep 19, 2022 11:01 AM
       Inheritance (by Robert J [CA]) Sep 19, 2022 12:00 PM
       Inheritance (by WMH [NC]) Sep 19, 2022 12:02 PM
       Inheritance (by ed [CA]) Sep 19, 2022 12:04 PM
       Inheritance (by RB [TN]) Sep 19, 2022 12:13 PM
       Inheritance (by S i d [MO]) Sep 19, 2022 2:59 PM
       Inheritance (by Landlord ofthe Flies [TX]) Sep 19, 2022 4:15 PM
       Inheritance (by Ray-N-Pa [PA]) Sep 19, 2022 6:10 PM
       Inheritance (by MMIT [VA]) Sep 19, 2022 9:13 PM
       Inheritance (by Jim in O C [CA]) Sep 19, 2022 9:33 PM
       Inheritance (by LordZen [MA]) Sep 20, 2022 12:30 AM
       Inheritance (by ed [CA]) Sep 20, 2022 8:04 PM
       Inheritance (by tryan [MA]) Sep 21, 2022 8:09 PM

Click here to reply to this discussion.
Click Here to send this discussion to a friend

Inheritance (by CJ [FL]) Posted on: Sep 19, 2022 10:45 AM
Message:

What advice do you have to pass on my properties to my children. What legal documents will I need? I am thinking to have the properties and assets managed for a timeframe of, say, 10 years, after I pass away, and have a certain dollar amount given to each child each month until they reach a certain age, then let them take full responsibility for the remaining assets and to manage the properties (if they choose to keep them) at that later age. I am older, and the kids are currently early teens. Any ideas on what type arrangements you have made for your kids will be helpful. --76.242.xx.xxx




Inheritance (by Hoosier [IN]) Posted on: Sep 19, 2022 11:01 AM
Message:

We do not have children, so I cannot give you a direct answer. However, I did have to think through this re: my wife...who does not want to be "burdened" (her words, not mine) with rentals when I die.

First off, do you have the properties in a separate legal entity like an LLC or corporation?

I would recommend working with an attorney. Obviously you need a will. In some cases a trust may be advisable.

Every family is different, but I've been involved with a couple circumstances where a person with many rentals died and left them to "family" (one was to adult kids, the other to his wife) and neither one worked out well...as they had not planned well.

In both those cases, the recipients wanted nothing to do with rental properties, and all it did was create a bunch of work for them to deal with rent collection, repairs, and tenant issues all while they were trying to grieve for the loss of their loved one.

It's obvious your kids are young, but I'd recommend that as they become adults you rethink all this if you're still alive and ask them if this is what they would want. Until then, it seems like you're planning to have someone else manage everything and just send them profits, so that might work out well. But if they become adult kids before you die and don't want the rentals, then you may be better off selling them as your health begins to wane...or at minimum prepare a very detailed document to guide them through the process of "unwinding" the business.

Liquidating a rental portfolio is no simple task, and you should anticipate this or at least provide funds for people to do it for them.

--99.92.xxx.xxx




Inheritance (by Robert J [CA]) Posted on: Sep 19, 2022 12:00 PM
Message:

Today, we as landlord maybe so screwed compared to previous tax laws on inheritance! In the past we could have set up a Family Trust. Then when either souse passes on, we would get a stepped up basis and could start the depreciation all over again. This would shield a great portion of the rental income from Income Tax.

But because parents didn't teach kids about keeping the family trust alive until the youngest grandson passes on, then your children would break the trust, sell the asset's (real estate) and then pay income tax on the investments made with those proceeds.

And if your trust was still alive and your kids didn't take everything out of the trust, instead of an "in-law" getting divorced and taking half of your child's share, when your child died, it would go to the grandchildren instead of a divorced spouse of your kids.

So my advice is to spend the $2,000 to $5,000 and seek the advice of a Probate/Estate Attorney and NOT your family law or divorce attorney.

Since the law are always changing, your attorney will know about your States Probate Rules and Federal Inheritance laws also. --47.156.xx.xx




Inheritance (by WMH [NC]) Posted on: Sep 19, 2022 12:02 PM
Message:

The "gift" of Real Estate can be a true blessing...or a curse. I've known families ripped apart over a single house (we got one of our better deals that way.)

IF a rental business is to be passed successfully, the kids have to want it AND understand it. My kids happen to want it - they are older (30s and 40s) and have seen what it has done for us. We have taken them to Mr. Landlord Conferences and Boot Camps too, so they can learn what we do before they have to do it...

That said, we are not leaving it all to all the kids: each kid will get a designated set of houses to do with as they will, with no in-fighting. Yes, it dilutes the total package, I don't care - I don't want anyone fighting over our dead bodies ;)

To accomplish this goal, we had an experienced Estate Attorney draw up a Family Trust (and POAs and Pour-Over Wills, etc.) It cost us about $3500-$5000 (I forget, but it was remarkably reasonable for the sheer number of documents they produced ;)

Highly recommend expert legal advice for this one. --50.82.xxx.xxx




Inheritance (by ed [CA]) Posted on: Sep 19, 2022 12:04 PM
Message:

following..... --108.201.xx.xx




Inheritance (by RB [TN]) Posted on: Sep 19, 2022 12:13 PM
Message:

Die broke. --24.183.xxx.xxx




Inheritance (by S i d [MO]) Posted on: Sep 19, 2022 2:59 PM
Message:

I second WMH's recommendation to have an experienced Estate Planning Attorney draw up a Will, a Family Trust (aka Revocable Living Trust) , and all of the supplementary papers for making this work.

Your estate is more complex that 90% of Americans, just by nature of owning real estate and possibly having minor children inheriting rental property. Do not try to do this on the cheap. Yes, it will cost somewhere between $3000 - $5000, depending on how detailed you get. Simpler is generally better.

For our Trust, we divided up the estate into 3 distribution points: age 20, age 25, and age 30. This will give our kids TIME to learn about personal finance, the value of the assets, how to manage them if they are interested, and if not they will know how to divest them. There is a Trustee knowledgeable in finance to assist them with this. We also have built-in required financial education they must complete before receiving direct distributions, but the Trustee can pay for some expenses (education) if needed.

There are dozens if not hundreds of variables that are too complex to dive into here online. Hire competent professional help to guide you thought this.

Btw, I am very pleased to hear that you take such a thoughtful concern for your kids. That's already a major step in the right direction! Congrats to you. --184.4.xx.xx




Inheritance (by Landlord ofthe Flies [TX]) Posted on: Sep 19, 2022 4:15 PM
Message:

Create a irrevocable trust and place a life insurance policy in that trust. Make your children benefactors of the trust. Every year you pay the life insurance policy bill which counts as gifts to each child (annual giving). There's a limit to annual gifting (ask accountant).

Upon your death, the life insurance policy is cashed in and handed tax-free (because of irrevocable trust) to your kids and can pay all or most of their inheritance tax.

That's what my mom did. Life insurance companies move pretty fast. Long before the estate is settled. --108.69.xxx.xxx




Inheritance (by Ray-N-Pa [PA]) Posted on: Sep 19, 2022 6:10 PM
Message:

Name them a successor beneficiary in the land trust. When you pass, they get the properties with any inheritance tax.

Where the feds do a nice job helping out investors, my state can charge upwards of 15% depending who receives the property via inheritance

Google up Randy Hughes and land trust --24.101.xxx.xxx




Inheritance (by MMIT [VA]) Posted on: Sep 19, 2022 9:13 PM
Message:

I would think that your wife would be in line to inherit your estate before the kids.

If you only have a few properties and/or if your net worth is not very high, liquidate everything at your death and the cash goes into a trust. You specify how the cash is invested within the trust. Then have the trustee make distributions to the kids at certain milestones (reach a certain age, attend college, graduate from college, down payment on a house, etc).

If you have a lot of properties, have the trust sell the properties when you die and invest the cash in the stock market (index funds). Then distribute to the kids as outlined above.

The most important thing is to teach the kids now about money management, investing, and managing real estate). --174.204.xxx.xxx




Inheritance (by Jim in O C [CA]) Posted on: Sep 19, 2022 9:33 PM
Message:

We have all our assets in a revocable trust. First distribution is to the first trustee spouse and then the final distribution is to our two children.

After a lot of consideration we have one child getting 50 % no strings attached but other child’s 50% goes into a management trust and he we get an allowance. The second child and his wife are not responsible enough not to squander away a sizable amount of wealth.

Each child knows the terms of the trust. --99.23.xxx.x




Inheritance (by LordZen [MA]) Posted on: Sep 20, 2022 12:30 AM
Message:

Following --98.216.xx.xxx




Inheritance (by ed [CA]) Posted on: Sep 20, 2022 8:04 PM
Message:

following

--108.201.xx.xx




Inheritance (by tryan [MA]) Posted on: Sep 21, 2022 8:09 PM
Message:

Rental property is a burden to those who are not cut from our cloth.....mine will be left with lake house they have known since 5 and 7 years old.

Everything else will be cash. --206.84.xx.xxx



Click Here to send this discussion to a friend
Report discussion to Webmaster


Reply:
Subject: RE: Inheritance
Your Name:
Your State:

Message:
Inheritance
Would you like to be notified via email when somebody replies to this thread?
If so, you must include your valid email address here. Do not add your address more than once per thread/subject. By entering your email address here, you agree to receive notification from Mrlandlord.com every time anyone replies to "this" thread. You will receive response notifications for up to one week following the original post. Your email address will not be visible to readers.
Email Address: