Let’s assume the makers of the revocable living trust have died and now the executor must go through the assets. Single family rentals were titled to land trusts and the land trusts are owned by the living trust. What’s the best course of action? Keep the SFRs, which provide cash flow, and reflect passive activity losses due to depreciation, and file a trust tax return each year? Or, be sure to divvy up all SFR to the beneficiaries with the hope of NOT filing a trust tax return that first year or subsequent years? Discussions take us all up to the point of preparing a Living Trust. Enquiring minds want to know how to handle the aftermath in the most expeditious way possible that provides the best financial outcome for the beneficiaries. A few of us will be executors of loved one’s estates. Does anyone have an interest in providing direction?
Great question, we answered during today’s recording (5/28) and it will be available in a few days. Give our law firm KKOS Lawyers a call for some advice and planning on this. We’d love to help at www.kkoslawyers.com.