[WSBARP] estate planning for investors with financed rentals

[Doug Owens]

Dear Listmates, I have a married couple who are clients in their forties with small children and a community property agreement, and who own several residential rentals that are financed.  They want to provide that on the death of the first to die, the property they have accumulated will be preserved for the benefit of the children of their marriage and not be available to the issue of a subsequent union of the surviving spouse.  With the CP agreement I do not see how this can be done unless they convey the property into a trust while both are still living, but I am concerned about the due on sale clauses in the deeds of trust on the rentals.  Does anyone have any experience with this type of plan?  Thank you.  Yours truly, Doug Owens