I have an 88 year old grandmother who has purchased many properties throughout the years. She has paid cash for the properties so they are owned by her. She has six properties where she is acting as the bank and has DOT’s executed with the buyers. She also has three rentals.
My Grandmother turned 88 in May and as she puts it she wants to spend her remaining years as a little old lady, not having to deal with anything in regard to the properties. I am her grandson and when the time comes I will inherit the properties. But she wants me to take the properties over now.
Was wondering what the best way would be to transfer the properties over to me so that I am responsible for them in every way as the owner of the properties. Collecting the money, taxes, insurance, etc.
Are you the sole living relative? It’s one thing to help grandma, it’s another to suddenly have ownership of all her properties.
You need to contact an Elder Attorney in your town or nearest city. This is a complicated scenario with estate taxes, her will or lack of one, maybe setting up a trust, and of course the other heirs. You don’t want to create a big family feud that could go on for years and ruin the good will in your family.
This is a big issue. Please don’t go it alone.
In the meantime, maybe you could help collect rents, show the houses, give grandma a hand.
Please let us know what advice the attorney gives you. We will all face these issues someday.
The first question I would have to ask is if the properties are in a Trust?? Never put your trust in money put your Money in a Trust. She can still be the on the trust along with you and other Beneficiaries that way God forbid something happens to your Grandmother the properties automatically go to you and the other listed Beneficiaries of the trust without going to probate. Now that being said I would personally put each property into its own Trust… Example if the property is on Main st. make it the Main St. Family trust. Reason being on that is that if someone gets hurt on that property and wants to sue you for they can only take one property they can’t come after your for everything simply because you don’t own the property the Trust does. Wow there is a lot of things to take into consideration on this deal. Are you personally going to be the only person that is getting the houses or are there other heirs to the estate?
Yes I am the last living heir. And am contacting an estate attorney tomorrow. I am collecting the rents and mortgagees and have been for the last several months. Also updated one of her rentals for her after evicting the parasites that were living there. I learned a lot really quick.
Bottom line is she just wants the income and not have to deal with all the other stuff that goes along with it. An example is we are having trouble with one of the people that purchased a home from my GM. She never pays on the first per the DOT. She got hit with a code violation from the city for not mowing her yard. Her insurance on the house is about to expire Wednesday. Every month since the DOT was executed last September she has never paid on time. Never returns calls, so I have to sent out the foreclosure letters. And there is nothing we can do because she eventually pays.
Thanks I will ask the attorney about a trust this week when I go and talk to him. And thanks for the info as far as putting each property in it’s own trust. And yes I am the only person that is going to be getting the houses. This was all my grandmothers idea because she thinks and I agree that taking care of it now instead of when the day comes that it would be an easier transition than getting hit with this all at one time.
It sounds like you have a very smart and loving grandmother. Get this all done and the houses functioning smoothly and then take her on a cruise.
The biggest problem–property transfer that will benefit both parties–is the critical step. Make sure that attorney is not just trying to feather his own nest by expensive trust set-up fees. This could be worth a second attorney’s opinion.