When Frank and Lillian acquired their first duplex in the late ‘80s, they never imagined it would be the start of a family legacy. Over the next 30 years, the couple quietly built a small but valuable portfolio of six rental properties throughout California. The properties provided steady income, helped put their three kids through college, and became a central part of their retirement plan. HOW TO KEEP RENTAL PROPERTY IN THE FAMILY WITHOUT A LEGAL BATTLE But like many landlords, they hadn’t thought through what would happen when they were gone. It wasn’t until Frank had a health scare at age 74 that the family gathered around the kitchen table to talk. What came out of that conversation changed everything and avoided a legal disaster that could have torn the family apart.
THE PROBLEM: OWNERSHIP WITHOUT A PLAN Initially, Frank and Lillian had titled all their properties in their individual names. They had a basic will and a living trust, but it hadn’t been updated in over a decade. There were no clear instructions for managing or dividing the properties after their death. Worse, one of the kids, David,
was managing the properties part-time and expected to inherit them. His siblings assumed they’d just sell everything and split the proceeds. A fight was brewing. And they didn’t even know it yet.
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