Although nobody likes to dwell on it, the reality is that accidents and illness can – and do – occur. So, as the owner of rental real estate investments, what will happen to your property(ies) if you pass away?
There are many questions that may come to mind when determining how to transfer real estate after the owner dies. But in general, what happens will often be determined, based on whether or not the property owner has a will.
When the owner of a property dies and they have a valid will in place, the asset will typically pass to the beneficiary (or beneficiaries) who are named in the document. After the probate court has validated the deceased individual’s will, the executor can help with transferring the property(ies) to the rightful heir(s).
However, if the property is owned by an individual, and the owner dies without a valid will, the local court may determine who receives the property. This is often decided using a set of rules that are referred to as intestate succession laws.
If you do not own your investment property(ies) in your own name, and you instead have an LLC (Limited Liability Company) or other type or corporate ownership in place, it is possible that the operating agreement would provide what happens going forward, upon the death of one of the LLC’s members.
Because all situations can differ, though, there is not just one simple solution that works for everyone across the board. That is why it is critical to discuss your options with an attorney who is well-versed in the transfer of real property. You can then put a plan in place that more closely fits your specific objectives.
If you own residential rental property in the Orlando and/or Central Florida locale and you’d like to delegate some (or all) of the time-consuming tasks that go along with the day-to-day managing and maintaining of it, <give Central Florida Property Management a call today>.
We are happy to answer any of the questions that you have so that you can determine whether or not working with an experienced local property management team is right for you and your real estate business.
So, call us directly at (407) 429-4834 or send us an email via our secure online contact form by going to https://cflpropmanagement.com/contact-us/. We look forward to hearing from you!
Sources:
Estate Property: Transferring Property After Death. By Patrick Hicks. Trust & Will. https://trustandwill.com/learn/transfer-of-property-after-death-without-will
How does your property get transferred after death without a will? FreeWill. https://www.freewill.com/learn/transfer-property-after-death-without-a-will