All Forum Posts by: Long D.

Thank you for always thinking of me Mark. Jason, I'm happy to discuss. Feel free to message me.

If you want good and marketable title in the property now, multiple probates are likely. 

Another possibility is to have ALL potential heirs sign special warranty deeds over to you per F.S. 95.22 and in 7 years you may have insurable title but not before. This is a risky proposition in the event you miss one of the heirs along the way. I've only done this when inheritance is clear. I realize this requires that all heirs cooperate but it's a possible option to avoid probate - though admittedly not a great one. 

Good luck.

Ok - I'm not an expert in foreclosure or short sales, but I'd just see about negotiating a sale and seeing what the bank will take. 

Once you've got an acceptable agreement, she needs to take it to the probate and guardianship judges through her attorney.

Ok, then she'll likely need to ask the Guardianship judge for permission to sell and put the proceeds into a g'ship account. I suppose she could ask about renting it out as well. 

Chiming in only to address the issue of the minor child. She will likely need a guardianship setup so that she can legally sign off on behalf of her child. Children are not able to sign a POA to anyone.

Thank you @Mark Pedroza for always thinking of me.

@Zach Westerfield: Your question has 2 critical concerns that are managed quite differently.

1. Protecting your mother's assets. 

There are a host of ways to limit liability and while putting the home into an LLC sounds attractive, doing so can create unnecessary burdens (higher taxes, higher insurance premiums, etc). I'm not a tax lawyer so I'm not 100% sure of the tax impact on rent collected merely because the property is going into an LLC. Bear in mind that business related expenses may be offset whether or not it is in an LLC. Seek a tax professional if you want to dig deeper.

As for actual liability protection, if the LLC is not run as a true business, then the LLC may not be all that helpful anyway. Many people form entities to hold property with a false sense of security that they are immediately shielded from liability - then later start commingling personal funds, failing to update corporate paperwork and blurring the lines between personal and business matters - all things which erode the LLC protections.

As @Wayne Brooks mentioned, insurance may be adequate but coverage may need to be increased since the property will be rented. I personally would choose to ensure I had more insurance before I created an LLC for a single property.

2. Avoiding probate. 

If you move the property into an LLC, it will avoid probate but there are alternatives. If grandmother creates a revocable trust, she could move her 50% interest into the trust. Upon death, the trust dictates who inherits grandmother's portion of the property - if your mother is the only heir, so be it. 

An easier potential solution is to execute a Ladybird Deed (aka Enhanced Life Estate Deed). Essentially, grandmother transfers her interest to "remainder beneficiaries" (your mother) provided grandmother still owns the property upon her death. 

For the duration of her life, grandmother retains a "life estate" and the sole discretion to dispose of her ownership without permission/consent of the remainder beneficiaries. (Think of this like a payable on death beneficiary on a bank account.)

This deed has 2 distinct advantages: (1) Stepped up tax basis and (2) immediately owned by remainder beneficiaries upon death. Avoids probate entirely if done properly.

Hopefully this was helpful - let me know if you need clarification.

LHD

Thanks @Mark Pedroza!

@Rosemary Novak

Thanks for the clarification. I read this too fast and thought the owner was selling the property that was later lost to tax deed sale. 

Maybe check with another title company that uses a different underwriter and see if they have another solution. 

Sounds like the "owner" isn't really the owner - at least not without probate.

I recommend you consult with a probate attorney and go over the details with a fine toothed comb.