Posted on: 12th Jan, 2009 04:37 pm
How to manage joint owned rental property with sister and maintain individual accounting and inherit...My sister and I inherited property (Joint tenants) from our parents in Los Angeles. Everything has been completed by the trust atty. How should we set up a bank account for rent income deposits, repairs and tax purposes? The properties are mortgage free, and we want to receive our annual income share and also make our share of this property available to our individual family heirs should something happen. Do we have to start a business? We are great sisters and don't envision any problems as joint owners. Something as easy as possible!
Hi johnsjt,
As far as I know, you may open a joint account in the bank which will give both of you the right to receive your annual income share. But it will be better if you can consult a financial adviser who can guide you in this case.
Thanks
As far as I know, you may open a joint account in the bank which will give both of you the right to receive your annual income share. But it will be better if you can consult a financial adviser who can guide you in this case.
Thanks
Suggestions on how joint owned rental property between sibilings can be financially managed so that each owner's heirs receive their share should something happen to the owners?
Someone has suggested establishing a LLP (limited liability partnership) in my case. Can you advise me on the benefits/restrictions, etc. of such a status?
LLP or limited liability partnership has essentials of both partnerships and corporations. In this case, one partner is not responsible for another partner's misconduct. In this partnership, all partners have a form of limited liability for each individual's protection within the partnership which is very similar to that of the shareholders of a corporation. All the states have their own law governing the formation of LLP. It should also be noted that the liability of the partners varies from state to state. But there are some states which have come up with the law that partners in an LLP can be personally liable for contract and intentional claims brought against the LLP.