Looking for thoughts on these vehicles for individuals with seven figure real estate holdings. Assets compromised of one apartment complex & 30+ SFHs.

Owner advancing in age, is tax averse, and has a potential mess on their hands regarding distribution of assets when they pass.

Curious about risks, tax implications for beneficiaries, etc.

to the best of my knowledge, the estate is tax exempt until the assets exceed 5.3 million. So depending on where he falls in the seven digit range would determine tax implications. income earned on it may require you to pay some taxes though.

make sure their will is in order, and has a good PR and alt PR named who can handle everything.

If this is for a married couple, the estate tax exemption is $5,45M per spouse, or $10,9M (2x the individual exemption).

Also the exemption changes every year, as it's indexed to inflation from the 2011 limit of $5,0M.

There are a number of ways to reduce/avoid the 40% inheritance tax (substantially less than the 40% rate) even if you exceed the individual exemption

Talk to a good estate attorney (ours is also a CPA); ask about the unified credit, annual exemption; exemption Portability and "All to Spouse" or "Automatic" Plans.

If they have an issue deciding who's going to manage it all, they could name a Corporate Trustee/Co-Trustee.

Much appreciated info.

Have a referral for your attorney/CPA?

sure; i have two let me look them up and post...

EDIT below; I've got one more estate attorney that I can provide as well.


We use Jerry Morgan in Amarillo (but we live north of Dallas - it's worked fine for us; he travels)

Jerry Morgan
Burdett Morgan Williamson & Boykin
jmorgan at bmwb-law.com
803-358-8116


Also, we've got a great CPA, Rick Mozley at JTSCO who works closely with us on our Tax and Estate Planning. We already had a relationship with Jerry Morgan before we moved to JTSCO for our Tax work.

Rick Mozley
Judd Thomas Smith & Co.
whm at jtsco.com
972.661.5872

Rick and Jerry both could probably recommend someone in Houston if you need a local (I think your profile says you are in Houston) But obviously both not being nearby works well for us; we do everything remote with Jerry and Rick but they both meet us when needed....


Does your person have a defined/combined benefit plan?

Thanks again, copied the info in case you want to remove any personal info.

Unsure if they have a defined benefit plan or not. Have been told there's a will, but have not seen, so not holding my breath.

It's a pretty interesting situation all around, and the type of contacts you recommend will undoubtedly be needed.

Really just looking for ways/info to show this person that they're spinning their wheels way too much with the current assets. Said person still works on the majority of maintenance at the apt complex...and they're closer to 80 than 70. Couple that with aging SFHs, and the owner slips further behind each year. Not to mention their spouse's preference to pivot to more enjoyable activities...

Which takes me back to the original inquiry re NNN investments...

If you need someone in the Houston area let me know. I have a few good estate tax planning attorneys that I like working with (I am a CPA)

Shoot me an email (my email is in my profile)

I have a recommendation if in CS.

Are they looking to divest any?

Couldn't they transfer all of the holdings into a LP or LLC owned partially by the beneficiaries and then transfer it via revocable trust?

mwp02ag said:

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Are they looking to divest any?

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Possibly, but not actively. Certainly not the apt complex unless they unload all of the properties.

Dave - unsure, but that's a much appreciated question as I don't know if they've thought about it, etc.

Shoot me an email david@voorheesteam.com

I think I am in a similar situation and can let you know how my family handled.

Situations like this can be much deeper than the numbers. The drive that got them to where they are can be hard to abandon no matter how unnecessarily hard they are making things on themselves. It also comes from the generation that believed that hard work and getting your hands dirty was the only true way to self worth and salvation. Combine it all with the increased need for control that some seniors feel as they age and lose control of other things and you could have a very hard sell on your hands. The overwhelming burden can be very self serving for these people (think of the multimillionaire farmer/ land owner that sits around and *****es all day about all his problems until the day he dies). It can all make sense and you can lay it all out there but there may be bigger forces at work.

Sounds like my family member to a T.

Only thing you forgot was the "I had nothing growing up, and even though I have more than 95% of Americans I can never rest because I don't feel secure".

It'll be an interesting transition for sure.