Rental SFR Currently in Irrevocable Trust - Now What?!

[George Post]

Good Day!

We have a rental SFR that is currently in an Irrevocable Trust. Sadly, the Grantor has passed away (Grandmother in-law) and the trust has served its purpose and the asset is now ready to removed from the irrevocable trust. The beneficiaries (Mother -67 and aunt in-law-61) would like to pass the home down to my wife and I (33 & 34). The house is worth conservatively $400k (with no debt on it) - rent $2400/month. We would like to hold the property forever, and pass along eventually to our children (1 and 3). We also would like to be able to put minimal debt on it (HELOC or Cash Out Refi) eventually. Rental Income is currently going to my wife and I, as we are in REI growth mode. However, the rental income would be split down the road with aunt in-law once she is ready to retire. Mother in-law already lives with us and is now financially tied to us.

*Do we put in my/wife's name?

*Do we put in Realty Trust?

*Is there any other ownership structure that makes sense?

*Pros and Cons for each- with regards to liability, tax advantages, and ability to get financing? 

Thanks in advance!~

George