LL Last will and Testamen
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LL Last will and Testamen (by Dave [MS]) Sep 12, 2023 8:46 AM
       LL Last will and Testamen (by Marv [IL]) Sep 12, 2023 8:50 AM
       LL Last will and Testamen (by razorback_tim [AR]) Sep 12, 2023 9:08 AM
       LL Last will and Testamen (by WMH [NC]) Sep 12, 2023 9:29 AM
       LL Last will and Testamen (by Jim in O C [CA]) Sep 12, 2023 10:09 AM
       LL Last will and Testamen (by Bonanza [NC]) Sep 12, 2023 10:28 AM
       LL Last will and Testamen (by S i d [MO]) Sep 12, 2023 10:43 AM
       LL Last will and Testamen (by LisaFL [FL]) Sep 12, 2023 10:59 AM
       LL Last will and Testamen (by Richard [MI]) Sep 12, 2023 11:59 AM
       LL Last will and Testamen (by Bonanza [NC]) Sep 12, 2023 1:10 PM
       LL Last will and Testamen (by Hoosier [IN]) Sep 12, 2023 4:27 PM
       LL Last will and Testamen (by MikeA [TX]) Sep 12, 2023 7:31 PM
       LL Last will and Testamen (by Robert J [CA]) Sep 12, 2023 8:33 PM
       LL Last will and Testamen (by don [PA]) Sep 12, 2023 9:21 PM
       LL Last will and Testamen (by Small potatoes [NY]) Sep 12, 2023 11:44 PM
       LL Last will and Testamen (by Nicole [PA]) Sep 13, 2023 12:56 PM
       LL Last will and Testamen (by don [PA]) Sep 13, 2023 9:56 PM
       LL Last will and Testamen (by Ray-N-Pa [PA]) Sep 18, 2023 6:55 AM

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LL Last will and Testamen (by Dave [MS]) Posted on: Sep 12, 2023 8:46 AM
Message:

Hello Everyone,

I am in the process of updating and reorganizing my will. I do plan to meet with an Attorney. However this board has so much wisdom from so many RE Investors I want to learn from your experience. Here are some important questions I need to solve:

1. What is the best way to transfer 20 paid for rental homes?

(Trusts vs Normal Will)

2. What about cash accounts, stocks. mutual funds, etc

3. What about personal property, (autos, residence, etc

What are some mistakes to avoid?

Any thing else that i need to know?

Thanks so much for your time......... --69.228.xxx.xxx




LL Last will and Testamen (by Marv [IL]) Posted on: Sep 12, 2023 8:50 AM
Message:

Remember that if you die and the property is in your name (or a grantor trust), your assets are passed to beneficiaries at fair market value. In other words, depreciation goes away!

Your estate will not pay taxes unless your lifetime gifts plus assets are over $12m. --67.184.xxx.xxx




LL Last will and Testamen (by razorback_tim [AR]) Posted on: Sep 12, 2023 9:08 AM
Message:

You want all of your assets in a trust in order to avoid probate. If the trust is properly constructed and funded, your successor trustee will be able to step in and act quickly to distribute your estate as you instruct. Probate will take a lot of time and money - it's best just to avoid it. --98.174.xxx.xxx




LL Last will and Testamen (by WMH [NC]) Posted on: Sep 12, 2023 9:29 AM
Message:

It's not enough to just get an attorney...you need an ESTATE attorney who is familiar with all the instruments: trusts, wills, pour-over wills, etc.

Our Real Estate Attorney is fine for closings, but seems to know little about estates although he lists it on his website as an area of expertise.

We went to a firm that specializes in estates and elder law and feel much more comfortable with the results.

Our LLCs own our houses. Our Trust owns the LLCs. The Trustee - one of our sons - distributes the Trust per the instructions. He can contact the Estate Attorneys we used if he needs help. --50.82.xxx.xxx




LL Last will and Testamen (by Jim in O C [CA]) Posted on: Sep 12, 2023 10:09 AM
Message:

We have everything in our trust. When the first goes the property gets a stepped up basis so it could be sold with no capital gains. When the remaining person goes we get a stepped up basis plus the depreciation recapture is forgiven. --99.23.xxx.x




LL Last will and Testamen (by Bonanza [NC]) Posted on: Sep 12, 2023 10:28 AM
Message:

I don't know your particular situation or how things are titled but generally if it is in an individuals name it goes through probate. If there is a 2nd name (spouse, kid, etc) depending on how it's titled the 2nd name owns it. Bank accounts, IRAs, stocks etc usually have TOD (transfer on death) options that you can fill out at the bank, employer, stock account holder. Silly things like cars, boats, etc if titled in your name will go through probate.

Probate (depending on your state laws) can be a pain so to get around that you can have things titled in LLCs or trusts.

Upon death, LLCs and trusts follow their own internal rules and don't tie up the asset in the court system.

So your lawyer will probably suggest an revocable trust to dump things in and when you die the trustee that you name can dispose of the assets.

The way I've set it up is things are either titled in an LLC or a land trust. Either way upon death, they get dumped into the revocable trust for the trustee to deal with. Bank accounts and investments have my spouse as TOD and others as secondary TODs incase we die together.

The last will and testament is for anything else that you didn't get around to dumping into the trust.

You should have a notebook (physical or digital) with all the bank accounts, passwords, phone #s, deeds, insurance polices, instructions, etc. in case you croak to make it easier for the next of kin. Insurance - call Sammy at 333-333-3333

1st Bank - call McDuck at 444-444-4444

--65.188.xxx.xxx




LL Last will and Testamen (by S i d [MO]) Posted on: Sep 12, 2023 10:43 AM
Message:

Another vote for an ESTATE attorney. Sometimes, they also go by "Elder Law" attorneys, but whichever make sure you get someone who does trusts as a regular course of action. You don't want the family friend attorney who did a trust 3 years ago for this one guy... the laws are constantly changing and being updated, so you want someone who is a practiced expert on everything.

Now here's the fun part: it's going to cost. Competent advice and work always does. My wife and I paid $3,500 to establish our trust. We have 3 minor children. This was done 4 years ago, so it's about time for an update.

One alternative might be if you were set up an LLC and make whoever you want the property go to a member of the LLC. It's a separate legal entity that outlives any one member, so survive members can receive the benefit of the LLC's assets. Check on any tax consequences of that with the attorney and also your CPA. We have our LLCs set to dump all the assets into our trust to be distributed among our kids.

Whatever you do, don't transfer title before death as that will trigger not only a gift tax, but also the stepped up basis for inherited property will be lost. Your heir(s) will pay tax on the full gain when they sell it if you pass it before death, instead of getting to reset the basis of the asset to fair market value at the time of your death. This is a many thousands of $$$ mistake that folks often make, so be sure not to do that. Your CPA and attorney can advise you on this as well.

--70.57.xx.xxx




LL Last will and Testamen (by LisaFL [FL]) Posted on: Sep 12, 2023 10:59 AM
Message:

Sid,

Sometimes itís best to give it away now even if they do receive your basis and not the stepped up basis. Especially if they need the asset now or if your estate will be subject to federal estate taxes.

Iím in this boat now. I decided it is best to gift a house because the recipient needs it. They may never sell it and can pass it on to their heirs with the stepped up basis. Or if they did sell it it would be taxed at the long term capital gains tax rate and recapture depreciation maximum rate. Both are lower than the current 40% estate tax rate which it would be potentially taxed at. --24.236.xx.xx




LL Last will and Testamen (by Richard [MI]) Posted on: Sep 12, 2023 11:59 AM
Message:

With 20+ houses and other assets it is best to get an expert to do this. One mistake can cost more than the expert would charge you. --172.58.xxx.xxx




LL Last will and Testamen (by Bonanza [NC]) Posted on: Sep 12, 2023 1:10 PM
Message:

I find lawyers are usually lazy so if your attorney does the paperwork for a revocable trust, you need to make sure all the property gets deed changed from John Smith to the Smith Family Revocable trust. They take your money and often do not follow through with changing the deeds. Any empty trust doesn't do you any good. That may include your personal house, your car, your boat, and whatever else that has a deed. --65.188.xxx.xxx




LL Last will and Testamen (by Hoosier [IN]) Posted on: Sep 12, 2023 4:27 PM
Message:

As far as the cash accounts and mutual funds, you should have already set a beneficiary for those...and that should be sufficient.

As far as the properties, I had set my wife up with durable POA so that she could make all decisions about the LLC in which they resided. --99.92.xxx.xxx




LL Last will and Testamen (by MikeA [TX]) Posted on: Sep 12, 2023 7:31 PM
Message:

You definitely need an estate attorney. Some of the information given above may not be relevant for your state. For example, in Texas, there is a closed probate process that makes it very efficient to transfer properties as an alternative to a trust. Many states also have a TOD option (transfer on death) which can avoid both the trust and probate processes.

Bottom line, be wary of anyone giving you advise other than a bona-fide estate attorney from your state. --172.103.xx.xxx




LL Last will and Testamen (by Robert J [CA]) Posted on: Sep 12, 2023 8:33 PM
Message:

If a child of your was on their death bed, would you take them to a Veterinarian for treatment? NO! So if you have a Tax Questions, An Estate Question and a Probate Question, ou should seek the help of a

Probate/Trust Attorney who has tax experts to help. --47.155.xx.xxx




LL Last will and Testamen (by don [PA]) Posted on: Sep 12, 2023 9:21 PM
Message:

I do estate work. First of all, don't assume that you want to avoid probate. Depends on the state. In my state, probate is simple and cheap. Generally, a will can direct to an heir any asset that is not jointly owned or has a beneficiary attached or is "in trust for."

Note: POAs are only valid for living persons. They die with the person that gave them. --73.141.xxx.xxx




LL Last will and Testamen (by Small potatoes [NY]) Posted on: Sep 12, 2023 11:44 PM
Message:

Retirement accounts do not need to go in the trust, just make sure you name the beneficiaries for each account the way you want them to go. Regular funds go in the trust to avoid probate in NY. --172.59.xxx.xxx




LL Last will and Testamen (by Nicole [PA]) Posted on: Sep 13, 2023 12:56 PM
Message:

don answered for me. Probate in some states might be a nightmare but not everywhere. I know nothing about Mississippi.

Also, the stepped up basis capital gains might disappear so that's not a given although I've always used the "what it is now" not "what it could be" method.

Gift tax wouldn't be owed by most folks. My understanding is that it's not the $17,000 that is the magic number but the lifetime gifts need to total the $12M.

I am gifting my adult children a piece of real estate. They will lose the stepped up basis but since they with 99.999% certain won't sell it, that will never come into the picture.

--98.237.xxx.xx




LL Last will and Testamen (by don [PA]) Posted on: Sep 13, 2023 9:56 PM
Message:

The federal estate tax swings wildly. The way they write the laws is that the exclusion amount goes up and up each year for a number of years, but then the law automatically expires and the exclusion drops way back down to a million or so until the next law is passed. I am sure this has caused many respirators to be unplugged at the the end of December! The actual federal rates when you get past the exclusion amount are punitive---55% if I remember right. --73.141.xxx.xxx




LL Last will and Testamen (by Ray-N-Pa [PA]) Posted on: Sep 18, 2023 6:55 AM
Message:

Good on you for thinking about this now.

Planning for the end is not an easy task. I am a huge fan for land trust for estate planning. A will is also a part of the estate plan as not everything is a good fit for a trust. End of life directives should also be art of your plan.

Each state is different. In my state, transfers of real estate to a spouse are not not taxed. Transfers to kids or parents are taxed at 7% and if you are not transferring one up or one down, then the tax is 15%.

Probating a property will take upwards of six months but if the property is in a trust, then that transfer is automatic and takes about three days for a judge to review the death certificate.

The successor beneficiary will then take over for you if that is what the trust says. In the event that you out live your primary successor beneficiary, you can appoint a couple of alternate successors.

From just a estate planning aspect, land trust make sense. There are also other twist that are outstanding for investors too about land trust but there are a variety of books out there to help you. Do you need a referral or two about these books I can provide you them

--24.101.xxx.xxx



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