5 Estate Planning Tips for Real Estate Investors
Use LLCs to hold title to certain properties for maximum asset protection and management during incapacitation
Utilize living trusts to hold membership shares and other real estate (including your primary residence) to fully avoid the need for probate
Take advantage of the step-up in tax basis for your beneficiaries by maintaining control and not gifting real estate in advance of death
Have a designated financial power of attorney and a healthcare power of attorney
Stipulate in your trust, will, or LLC the instructions for property management, distributions, and rules regarding how income should be allocated from rental properties and how/when properties should be sold and allocation of proceeds, including when to use a 1031 exchange, if necessary, for your beneficiaries