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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Estate Law
Satisfied Customers: 19477
Experience:  B.A.; M.B.A.; J.D.
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My father is ill and had cancer last year, that is

Customer Question

My father is ill and had cancer last year, that is supposedly in remission. My concern is if he gets sick again. He owns real estate, 1 4 plex and one 8 plex, and 2 other rent houses, plus the house he lives in. All property is in California. What is the
best estate planning vehicle? He is talking to a lawyer now about a family limited partnership. However, from what I am reading, there are concerns about post-death taxation, and behavior of the creator leading to later re-valuation of assets. All properties
have mortgages, including his personal residence. And to complicate matters more, the 4 plex and 8 plex are held in a partnership with another investor (not family). He has 3 children. I am one of them, my half-sisters are still minors. He's in his late 70's.
He is separated from his wife, but still living under the same roof. I'm sure you catch my drift. He said he had his wife sign quit-claim deeds on the rental properties. I am considering recommending him a land trust for each rental property, especially the
8-plex (because Garn St Germain act does not apply to commercial property), and divorcing his wife before he does anything else. If she takes over as joint tenant, everything would die and she would spend it all, because she is clueless about property management.
I'd like some perspective, and will tip appropriately for good suggestions.
Submitted: 1 year ago.
Category: Estate Law
Expert:  Phillips Esq. replied 1 year ago.

A trust would be a proper vehicle to go even with the properties that he owns in a partnership. He can transfer his share of the partnership to a trust, then that trust would own his share of the partnership properties.

Yes, divorcing the wife and tiding up that loose end would be better for all concerned. If he died still married to her and not legally separated, then the spouse would have a legitimate claim to all the properties that he owned at the time of his death.

Customer: replied 1 year ago.
a trust would allow continuity while avoiding probate?Can you give your biggest reason against a family limited partnership?A note on legal separation- there is a court order that they stay 200 feet away from each other- does that meet the threshold of separation? Or must they live in a separate household? Right now he is sleeping in a shed on the property.
Expert:  Phillips Esq. replied 1 year ago.

I am sorry, but I need to opt out of this post. I am tied with other things at this time. Another interested Expert would further assist you.