[WSBAPT] Estate Planning for Real Estate Investor

[Inge Fordham]

Colleagues:

Only a small portion of my practice involves estate planning and I keep it pretty basic.  I do not advise clients on complex trusts, tax implications, etc.  That said, I am wondering whether someone might be willing to speak with me or offer some basic advice.

My cousin, a real estate investor, does not have an estate plan (I advised that he needs to get one in place ASAP and would appreciate referrals in the Pierce Co. area for folks who frequently prepare estate plans for real estate investors).  He is in the process of purchasing a rental property and asked whether he should set up a single-member LLC (and quitclaim the property to the LLC) or to set up a revocable living trust, transfer the property into the name of the RLT to avoid estate tax implications (and probate), and then manage that property through an LLC.  I realize this needs to be considered in the totality of his estate plan, especially given that he also has an S-Corp through which he operates a restaurant.  However, so I can help point him in the right direction, is someone willing to discuss the very basics?  My thought is that while an LLC might shield him from certain liabilities, it could also result in significant estate taxes (as the net value of his properties exceeds the WA threshold).  I will also pass along any referrals.

Thanks in advance.

Best regards,

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Inge A. Fordham | Attorney
Fordham Law, PLLC
3218 Sixth Avenue | Tacoma, WA 98406
Office: (253) 348-2657 | Mobile: (206) 778-3131
www.fordhamlegal.com<http://www.fordhamlegal.com>

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