Hi, We have about 20 properties/36 total units. they are held in trust and currently managed by my mother( who is 88) and my brother. We are all on the trust. My problem is that my brother really wants sole decision making authority, feels that they are his and I also feel that he isn't qualified to manage.
for instance I approached him about signing up for a credit/background check service( they currently don't background check at all and have several non paying tenants) and he had a total angry meldown/rant over this basic management tool and feels it isn't necessary. He often reacts emotionally instead of analytically. He isn't business minded or thinking about how to secure things for the future.
In addition if he were to be the sole manager and something were to happen, we are in our 50's, I would immediately have to manage them, and figure out whatever mess of a system he had.
I intend to try and reason with him on another occasion, but this really worries me and I wonder what suggestions anyone might have. I suppose if worst comes to worst eventually we could change the trust and split the properties 50/50- I'm not sure how complicated that is.
The income from these properties may be my only income in the future. I had counted on it for future security. If managed well it would be enough to live on.
My first statement if that had been one of my brothers, You have several non-paying tenants why do you think that happened, did they slip a few bucks to you to get in or is it you just never heard about deadbeat tenants. Why don't you go spend a couple of days at the eviction court and meet some of the other people that think like you.
Frankly tenant screening is the biggest failure of many owners and when they cry to me I just say you just got what you asked for. I get answers like they were really nice. I called their current landlord and they said they were the best.
Ask a lawyer, if you can divide or assign the assets within the trust to specific beneficiaries. I would be concerned that moving the assets to a new trust might create property tax increases if you are in a state like California maybe creating a new trust and moving assets into it my be considered new ownership and trigger property tax increases. Need to check that out. The tax collectors are looking everywhere now days to increase revenue. But it seems with the brothers attitude I would want a separate trust and maybe he should be the one to create a trust for himself and transfer his share to it and he can do whatever he wants after that.
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