We often receive interesting questions from our students. We received permission to publish this one as a Blog since it might be of interest to many of you visiting our site.

Comment:

Thank you for your help. I hope learning all this is not “too little too late”.

Q. You said an LLC should be the manager of the rental properties. What exactly does that mean? Does it mean I establish an LLC and put my properties into it or do I establish an LLC and put my property manager (my son) into it?

A. Your son can act as an employee of the LLC and help manage.  He can or cannot own part of the LLC.  The tenant will contract with the LLC (Rental Agreement) and the LLC will “do all of the management” of the rental.  The LLC does not need to own the rental.  The owner should have a contract with the LLC, just like you would with one of the management companies you can hire for 7% of the rent to manage the place.  Your LLC is the management Company.

Q. My Living Revocable Trust says to put property into the Living Revocable Trust. Into which do I put my rentals: the trust or the LLC? (more…)

By Lee R. Phillips

It is on the news, in the papers and on the internet.  The whole world knows that Elizabeth Edwards, who died last month after a battle with breast cancer, made no mention of estranged husband John Edwards in her will.

I just read that, “the will names her 28-year-old daughter Catherine as executor and leaves everything to her three children. All of my furniture, furnishings, household goods, jewelry, china, silverware and personal effects and any automobiles … to be divided among them,” the will states, according to CNN.com.

I have a hard time believing that someone who went to law school passed her assets in a will.  A will is not private.  It must be probated and in the Court Proceeding everything becomes part of the public record.  That means we all know what happened.

Remember when Michael Jackson died?  The news media and tabloids were all drooling over how his multi-million dollar estate was going to be chopped up and the fights that might occur.  About two weeks after his death, it was disclosed that all of his estate was held in a living revocable trust. (more…)

By Lee R. Phillips

Prince William and Kate Middleton are finally engaged.  The engagement ring had been Princess Diana’s ring.  Apparently Prince Harry had inherited it, but he had given it to his brother so the next Princess could wear it.   I was so happy to hear of brothers not fighting over their departed mother’s ring.

In my job as an attorney, specializing in estate planning, I have seen too much fighting over the personal effects of the departed.  The best way to prevent such fighting is to write your last will and testament.

Many people wonder, “Do I need a will?”  The answer is yes you need a will and trust.  Others know they need it, but they avoid making last will and testament documents because they are trying to avoid expensive attorneys.

The good news is that you can write a will without a lawyer.  Writing a will yourself is not only possible, it is a great option, because you probably care about your estate more than anybody else.   I don’t mean that you should just pull out a paper and pen and began writing last will and testament.  You can do it, but I would recommend that you do a little research first.  The resources are available and with a little study, writing your will yourself will bring you peace of mind.  You can distribute your property as you wish and know your heirs will not be fighting over your possessions.