Advice for property

[meekie]

My in-laws have a commercial property with 6-10 storefronts. They have mentioned that they would like to leave this property to DH and I when they pass. The property is paid for, and seems to generate about $3000 in profit monthly, depending on major expenses.

Right now, I believe it's in my MIL's name. She has a will that was done through some willmaker software that leaves it to us.

She's been doing the property management for a while, but I think she's ready to hire a property manager, and she's also worried about her liability.

I'm worried about probate and estate taxes, and lots of messy paperwork in the future.

Any opinions or ideas on what we should look into? LLC? Should they look into gifting us shares of the property now? A trust? We will definitely involve a lawyer, but I'd like to supply her with a few good ideas to look into, so she doesn't end up selling it and buying an annuity.

 

[lemming]

Can you do the property management for her? Give her a chance to test your mettle and see if you can handle the day to day issues.

It might turn out that you want her to sell the property after all.
Tax wise, inheriting the property is the best, as long as law provides for a step up in value.

 

[pb4uski]

I like that idea, particularly since MIL could still be involved but you can handle the operational issues and the property could pay you a fee instead of paying a property manager.

Other than that, not much info to go on. If you are worried about estate taxes, I presume that in-laws have other substantial assets since I can't see a commercial property generating $36k a year of net cash flow being an estate tax problem.

Do in-laws rely on the income from this property? How old are they and are thye in good health?

 

[jebmke]

will that was done through some willmaker software

I'm thinking of developing some software called widowmaker that provides step by step instructions for people to perform brain surgery on themselves.

 

[meekie]

I don't have time to be a property manager at this time, and would hire one if it were up to me.
They also have a house and a duplex in San Diego, but not much else, so I guess the estate taxes shouldn't be an issue if they don't change again.

FIL still works, MIL has a good pension, but the income is allowing them to have a nice amount of fun money for trips and such. Both are in relatively good health, but starting to have occasional issues.