Renting out Minor Grandchild property
Hypothetically - this is in Virginia but most states adopted the federal laws
Owner - Grandparent
Heir - Grandchild
Parents - NOT involved
Rent collection after death - Friend
Property guardian - assigned
If rental property is left as inheritance to minor GRANDCHILD -
after the death of the grandparent :
-to be transferred to the grandchild when he reaches 18 - Deed in place ,
- to be rented until then -
- the rent to be collected on the behalf of friend , claimed by the friend as rental property for tax purposes, and the friend pays taxes on the income.
Question - Is this possible and what will be the issue in this case scenario?
The Parents are NO involved at all, There is NO Trust , NO will - it will be done directly with Deed on the behalf of the minor GRANDCHILD and appointed property guardian to manage the property and distribute the rental income to the friend.
I am just trying to understand my options before I talk to a lawyer and CPA .
Thank you