P.O.D.D. into a trust? Estate planning with no heirs.
Member since 2020 · 6 posts · 3 votes
I’ve acquired 7 properties so far — mostly older duplexes in SE Wisconsin (and hoping to add more).
I’m nearing 50 and currently don’t have a will or any estate plan in place. I have no direct heirs and no investments outside of real estate, and would like to get something structured.
From some basic "armchair" research, I’m leaning toward re-recording my deeds as payable-on-death to a trust. My thought is that this would keep things simple during my lifetime (easy to sell/refi, etc.) while setting up a structure for succession after I’m gone.
A few questions for those who’ve done this:
Can a trust essentially remain “mostly unfunded” until death?
What costs or legal complications should I expect?
Are there meaningful downsides to this approach?
What should I be looking for in an attorney or firm to set this up properly
What happens if I become incapacitated?
I currently self-manage, is there a best-practice on passing that responsibility?
Appreciate any insight from those who’ve navigated this, especially other small-to-mid portfolio owners.
I think you mean transfer on death deed, that might help with your search.
Most of your questions are probably best asked of your trust company.
Do you have a plan for the assets? (Could you skip the trust and give them directly tot he intended heirs?)
You’re going to need a trusted executor either way. For both the rest of your assets and to run the trust if you go that way. I would talk to them about their desire to manage the properties vs who they should turn to for management.
If they won’t make financial sense with a property manager there has to be a disposal plan in place. If they will maybe you should start using one while still alive? Worst case give them a few of your least favorites with a written plan for them to take over the rest upon your passing?
Good luck. At least you’re considering your options. I’m 58 with a 65 year old wife and without kids we still can get motivated to make a plan. You’re at least planning.
I’ve acquired 7 properties so far — mostly older duplexes in SE Wisconsin (and hoping to add more).
I’m nearing 50 and currently don’t have a will or any estate plan in place. I have no direct heirs and no investments outside of real estate, and would like to get something structured.
From some basic "armchair" research, I’m leaning toward re-recording my deeds as payable-on-death to a trust. My thought is that this would keep things simple during my lifetime (easy to sell/refi, etc.) while setting up a structure for succession after I’m gone.
A few questions for those who’ve done this:
Can a trust essentially remain “mostly unfunded” until death?
What costs or legal complications should I expect?
Are there meaningful downsides to this approach?
What should I be looking for in an attorney or firm to set this up properly
What happens if I become incapacitated?
I currently self-manage, is there a best-practice on passing that responsibility?
Appreciate any insight from those who’ve navigated this, especially other small-to-mid portfolio owners.
I am pretty sure there are lawyers here that can provide a good answer to your question. But a better answer will come from meeting an estate lawyer in your state of Wisconsin. Often there is an intake fee, for me that was about $600 for the lawyer to lay out the process and structure. This was an education session with opportunity for questions. Allow yourself, days or weeks to think about your options and then decide if you want to follow through. From my experience, once you decide to proceed, the intake fee is deducted from the total amount. I am not sure why one will need a Trust unless one is going to fund it. It seems like that is the real reason for setting up one: transferring your assets into it. Being the trustee, you will still have full access to your funds. Hope you get a better answer than this.