What happends to my rentals if I die? (tenant, banks, properties)
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I have a few cash flowing rentals. Just curious, if I were to die can my family or siblings (with bad credit) inherit them? Can the bank ask for the full balance in that case?
Just want to protect my family and ensure they can take over if something were to happen.
If they are owned by only you (and not in a LLC or other corporate entity, or not jointly with someone else) then they will go yo whoever you named in your will. You DO have a will, don't you?
My will states that everything goes to them (family). Should I find a professional property manager in mind so that they have someone to lean on in real estate matters?
This really is a legal advice needed topic.
Did an attorney do your will, or did you gin one up on an OfficeMax form?
If the former, go back for more. If the latter, take it to an attorney and get proper counsel.
It is extremely difficult to offer input of value on this when you should have a fiduciary advising you.
My will states that everything goes to them (family). Should I find a professional property manager in mind so that they have someone to lean on in real estate matters?
If family members with poor credit (aka: large, outstanding debt) inherit property, it ceases to be your property and becomes theirs. As such, it is subject to collection by their creditors.
If you wish to be more specific regarding your assets after your demise, you should say so in your will (trust). Similar things happen when one's child is married to a deadbeat and parents want to ensure the deadbeat doesn't get their hands on the inheritance. -- Attorney time!
You need to consult with an estate planning attorney. Putting all of your assets into a trust could greatly simplify your situation. There are also other methods that you need to discuss with an attorney.
I have a few cash flowing rentals. Just curious, if I were to die can my family or siblings (with bad credit) inherit them? Can the bank ask for the full balance in that case?
Just want to protect my family and ensure they can take over if something were to happen.
Personally, I would give each property outright to each family member instead of everyone sharing a share in all the properties. That will only end up in fighting and tear the family apart.
Let people profit or perish their own property on their own so the decisions they make are their own.
Sure banks can call for the balance in full at any point, its in the fine print. Happened in the 80's all the time. Will it happened again? No one knows.
You should not have all these rental properties in your name. You should have them as their own entity -- whether a trust or an LLC some other corporate form. Death issues aside, if a tenant were to sue you for some reason, you'd be personally liable, when you really want the rental to be through a separate legal entity.
Do you expect to die in the near future? At the very least, you need to make sure your estate is set up so that these properties go to those people whom you want to inherit them.
You seriously need to talk with your attorney.
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