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Recommendations of good Estate Planning / Real Estate Attorney

2,498 Views | 19 Replies | Last: 1 yr ago by Froppe
aglaes
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AG
Can someone recommend a good estate planning / real estate attorney. The land mentioned below is in central Texas, near Round Top and I currently live in the The Woodlands, so looking for someone in area that can help answer the many questions we have and help us arrive at solution that preserves the value of this potential future inheritance.

My great grandfather/grandmother bought and owned about 175 acres of land (near Round Top, TX) many years ago (early 1900's) for not much money - I don't remember the amount, but let's say less than $100/acre - probably a lot less. They gift deeded about 105 acres to their daughter (my grandmother) and son in law (my grandfather) who lived on and farmed the land. At "retirement" age, they gift deeded the entire 105 acre farm to their daughter (my mother, an only child). My mother then gift deeded 1/2 to my father (probably a mistake). My mother & father moved to the farm to live there in their retirement years and to take care of my grandparents.

My grandparents have since passed away and my mother has since passed away leaving my father as the sole owner of the property. My father remarried about 13 years ago (no pre-nup). Prior to my mother's passing, my mom & dad had wills made with 100% of either of their property going to the other on their passing and my Dad's will states, if my mother is deceased (which she is), that all of his property is to go to myself and my brother, 50/50 - there are no other siblings.

My dad and his current wife got to the point last year that they could no longer live by themselves on the property. My dad is in assisted living and his wife is in an independent living retirement facility (not the same one). My brother and I have been cleaning the property up (cleaning up a couple generations of stuff is no small task) thinking we are going to eventually sell it.

My dad will probably not need the money from the farm to continue his current care - although I cant be completely certain of that. We would like to re-invest the proceeds from the farm after real estate fees and taxes, into rental property - probably a vacation type rental property that would generate income in the event he may need money in the future and we could always re-sell the property later if needed - but hopefully not.

The issue is what do we need to do to settle any claims (if any) that my dad's wife may have on the property or proceeds from the sale of the property? Will we owe her money after the sale. Should we offer her money and draw up a contract to settle with her. What other options are there? We've gotten no indication from her that she has any designs on or expectations of payment.

The other issue is how best to deal with this from a tax perspective - to pay the lowest taxes possible.
beerag04
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AG
You are correct that you need to have a estate/real estate attorney review everything for you.

Without reviewing the documents, I can only speculate, but your best case scenario is that you receive a stepped-up basis upon inheritance and the property is your dad's separate property and the current wife is not entitled to anything.

One question is was your mom's will probated and the full interest in the property deeded to your dad prior to him remarrying? As long as your dad had the full interest in the property before he got married it is his separate property and she does not have an interest in the land.

Another is were there major expenses or debt payments related to the land that your dad and his current wife were paying for with money earned while they were married? To the extent community funds were used to pay for the land or the upkeep of the land, his wife would be entitled to some amount of the proceeds of the sale as repayment of her community funds. Doesn't sound like there would be much in this situation but you never know.
Aggie@state.gov
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AG
Moorman Tate in Brenham.


every paragraph after your first one requires a lawyer.
aglaes
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AG
beerag04 said:

Without reviewing the documents, I can only speculate, but your best case scenario is that you receive a stepped-up basis upon inheritance and the property is your dad's separate property and the current wife is not entitled to anything.

One question is was your mom's will probated and the full interest in the property deeded to your dad prior to him remarrying? As long as your dad had the full interest in the property before he got married it is his separate property and she does not have an interest in the land.

Another is were there major expenses or debt payments related to the land that your dad and his current wife were paying for with money earned while they were married? To the extent community funds were used to pay for the land or the upkeep of the land, his wife would be entitled to some amount of the proceeds of the sale as repayment of her community funds. Doesn't sound like there would be much in this situation but you never know.

As far as the step up in basis, we think (another reason we need assistance) because my mom gift deeded 1/2 of the property to my dad while they were both still alive, that only her half gets a step up in basis when dad inherited it from her. That's why I commented that it was probably a mistake to do that. But I agree that the best case scenario from a tax perspective for my brother and I is that we inherit the farm after dad passes and take advantage of the step up in basis at that time - prvided the laws don't change between now and whenever that happens. We just don't think we want to hold the property for however long that might be.

My mom's will was not probated, but very shortly after her death, way before dad remarried, he had his attorney draft an Affidavit of Heirship (I have the doc) as a means to transfer her estate to him, including the farm. Again, we need professional advice on what this means.

My dad and his current wife always kept all their money separate. Never comingled any existing accounts or income - they each have a pension and SS money coming in. There was no debt or mortgage associated with the property since my mother took possesion, and there were no major expenses for the farm or the house since my dad remarried, and any expenses - property tax, fence mending, whatever, my dad always paid for those items. He always considered it his separate property and he was responsible for any improvements or maintenance.

The other thing I'm curious about - can this farm property now be converted to rental property by leasing it out and then at some point in the future (how long?) used in a 1031 exchange to acquire another investment property - ie a vacation rental - ie lake house, beach house or condo, etc...
Mas89
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AG
Your dad could potentially leave the property to anyone in his LATEST WILL. Including his current wife or kids. You need to make sure he didn't have another will made after the new marriage. His attorney should be asked for a copy of the latest will in addition to asking your dad. As stated, you should hire a real estate attorney asap.
aglaes
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AG
Mas89 said:

Your dad could potentially leave the property to anyone in his LATEST WILL. Including his current wife or kids. You need to make sure he didn't have another will made after the new marriage. His attorney should be asked for a copy of the latest will in addition to asking your dad. As stated, you should hire a real estate attorney asap.
I am 100% certain there is not a more recent will. The concern I have is that the will is quite old and still lists my mother as "heir" to dad's estate, and if she has passed, then to me and my brother, per stirpes. The attorney that did me and my wife's will said his will is still valid and not necessary to create a new will, but I would just like to have full understanding of what the current wife may have claim to if dad passes before her. My attorney said the farm was clearly his property prior to the marriage and his will is clear about who it goes to, but others have said they are not so sure.

We are going to consult with an attorney, just looking for the right one.
Agilaw
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AG
aglaes
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Aggie@state.gov said:

Moorman Tate in Brenham.


every paragraph after your first one requires a lawyer.
Did you have some experience with Moorman Tate, or what is your reason for recommending them?
KC_Ag14
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AG
Hal Moorman is one of the most distinguished estate planning attorneys in the state. His firm specializes in just that. Been told he writes some of the curriculum for estate law for Texas law schools, and also helps writes questions for the Bar. Recently had a new Will drawn up by one of their associates and had a great experience.
normaleagle05
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AG
I surveyed out of Brenham for a number of years. Moorman Tate is a well respected institution there and is geographically relevant to the OP.

Having done a ton of survey work on old family land in Washington, Austin, Fayette, Grimes, Brazos, Waller, and other area counties I can't emphasize strongly enough that you should seek out a professional to point out your boundaries and any potential issues with them after so many years in family ownership. Especially in this area. Tracts far smaller than your family's in this area I have found were often surveyed last during Reconstruction following the Civil War. With a chain. Plus/minus 10% or more of a tract's called acreage is not uncommon in that area at any size. I've found 30 acres over the call on 209 acres.

Don't make important financial decisions calculated on terrible acreage information from the 1870's. Get it surveyed.
Aggie@state.gov
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AG
aglaes said:

Aggie@state.gov said:

Moorman Tate in Brenham.


every paragraph after your first one requires a lawyer.
Did you have some experience with Moorman Tate, or what is your reason for recommending them?
yes I have and all what KC and Normal said is true......
aglaes
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AG
Thanks for all the info. I have an appointment with Moorman Tate and we plan on having a survey done, although I think there was one done in the last 20 yrs or so for an oil lease, but I haven't found the report.
flashplayer
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AG
Can't help you with the legal issues, but after you square those away, might be interested in buying your place off market. Seriously. PM me.
aglaes
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AG
After having my dad's situation and documents reviewed by an attorney they assured us that the farm is my dad's "separate property". Current wife would have no claim to it.
normaleagle05
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AG
That makes things easier than the alternative.

Depending on how close to Round Top (or really Warrenton) the place is you might investigate how much you could make as an income producing property by leveraging the Round Top Antique festivities. If you've never toured that place on a Saturday when the sale is on and the weather is nice then you just can't imagine the number of people.

Parking, shuttles, between market storage for vendors, rv spots...all in short supply. Just a thought that might keep a family place for another generation to sharpen their character against by having deal with it.
aglaes
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AG
normaleagle05 said:

That makes things easier than the alternative.

Depending on how close to Round Top (or really Warrenton) the place is you might investigate how much you could make as an income producing property by leveraging the Round Top Antique festivities. If you've never toured that place on a Saturday when the sale is on and the weather is nice then you just can't imagine the number of people.

Parking, shuttles, between market storage for vendors, rv spots...all in short supply. Just a thought that might keep a family place for another generation to sharpen their character against by having deal with it.
As you might imagine as long as its been in the family, me and my brother have been going there since we were born (in the 60's) on a regular basis to visit my grandparents and then my parents. Its about 6 miles from Round Top and only about 1 mile from Warrenton. We've watched Round Top be completely transformed by the twice a year Antique Festival. Its become a pretty cool little town to hang out for an afternoon - when the Festival is gone. Selling the place is really a very tough decision for me.
flashplayer
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AG
As I alluded to earlier, I'm looking for a place that size in the area to relocate my cattle ranch. Would be interested to hear what you'd like to get for the place before it hits the market. Cash buyer. 361-649- 0125
aglaes
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AG
flashplayer said:

As I alluded to earlier, I'm looking for a place that size in the area to relocate my cattle ranch. Would be interested to hear what you'd like to get for the place before it hits the market. Cash buyer. 361-649- 0125
flashplayer - we have a couple of neighbors that have expressed interest and intend to give them first shot at it, but if they both pass, we can contact you as well.
flashplayer
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AG
Thanks. I appreciate that. A lot of folks always say they're serious buyers but are really looking to get pennies on the dollar. We are looking for the right place more than the right price. Good luck!
Froppe
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Flash player,
I can highly recommend Ryan Swope (yep, THAT Ryan Swope) and Jeremy Young with Swope and Young Land Co. I listed my place in Burleson County with them, and we were under contract with a cash buyer for full asking price in about a week. They would probably be great resources for you as a prospective buyer. They are both real pros at their business, and I couldn't be more satisfied.

Swopeyoung.com

Hope this helps!
Gig 'Em,
Froppe'76
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