New Property investor question
This may be a dumb question, but i have triplex that i recently purchased with a close friend of mine. I am wondering how i go about making sure that if something happens to me, my rights will go to my wife and not my investment partner? thank you for the help!
You have formed a partnership. You should formalize that partnership with an operating agreement. It should address questions like this and many others. You may want to see legal assistance in creating a solid one. You may also want to create a formal entity, like an LLC. Note that this won't increase your IRS paperwork. You will file the same returns you have to file for your informal partnership.
It sounds like you're in the honeymoon stages of things. This is a good time to put together a dissolution agreement, in the event that you and your business partner need to go separate ways. It's a lot easier now than when issues arise. I'm unfortunately speaking from experience. It should be worked into the operating agreement.
Mark, it's not a dumb question at all. First, look to the deed in to you are your partner. Hopefully, you didn't take title in survivorship. If so, you need to get it changed. Most likely your attorney/title company requested you take title as co-tenants. This means that if you passed away your half interest in the property would have to be part of your estate and have to be probated in accordance with either your will (which you should absolutely have) or state law. If in your will you bequeath the property to your wife then she will basically step in to your shoes and be co-tenants with your partner.