God forbid, if I were to die tomorrow tragically, how could my family/wife proceed with my current deals using my Texas LLC? Would it be a Power of Attorney? Living Will? I’ve never given this type of subject much thought since I didn’t have kids and any decent assets to pass along… but as you get older, these things cross your mind.
For example, if I had a deal in closing, about to sell it… I wouldn’t want that to have to go through probate or some junk. Y’all get kinda what I’m asking right? What should I do?!
@aflanagan I think it’s a great question we all ought to be thinking about.
I’m not what the nuances are of Texas law (maybe it impacts the “right way” to handle this kind of succession stuff), but just speaking for myself - me and my wife have a trust set up along with a Power of Attorney. If I ever kick the bucket, my wife can step in and sign everything on behalf of my LLC as if she’s me.
We paid about $1,500 for an attorney to put all of this together for us and we revisit it every 5 years or so as our life/family/situation continues to evolve.
I would think any estate planning attorney could help you with this and it wouldn’t cost a fortune.
@aflanagan I’ve bought and sold over 1,000 properties for my own inventory. I have both a wife and children, but none are interested in real estate. Right now 100% of my land inventory comes from tax sales, sheriff sales and bank reo; and 50% of my houses and apartments come from the same sources. Some of the assets need work like, access, right of ways, perk tests, surveys. I’ve been taking care of title issues for many years, so they are covered. My wife said that, if I die, that many of these properties would go back to tax sales, just to liquidate them. One of my major work now is to resolve any problems/issues and to sell property particularly the ones that don’t generate current income. I think that the income generating income will stay in the inventory after, I am no longer here. But the others they may be back on the tax sale lists, keep you eyes open for them. I did just sell a piece of land in December, that I bought at Tax Sale in 2,000. I paid $4,500, and sold for $425,000, nice mark up?
@david-krulac Some might burn up their calculator, I’m inclined to say ‘Good enough’ on the land you just sold.
You might consider packaging up some of the fallow properties by area and selling packages to local investors with seller financing. My wife might not resolve issues but she would be able to cash checks, no problem.