How property transfers with a will

Okay, guys, we’re going to run over a little bit today, but we do have Dr. Blake Bennett here. And I just want to we we talked about how property transfers without a will.

Now we’re going to talk about with a will. And we’re going to be brief because I know we’re holding you over, but we do have him. So we definitely want to take advantage of of our time with you. So let us know some things. Just because you have a will doesn’t mean everything. Oh, well, okay. No problem. Right.

Absolutely. You know, it’s number one is probate. Everyone thinks, oh, with the will, I’m going to have to go through probate. And that is true. There’s thresholds for the value, I can say.

So what is pro can you just let’s simplify it like I have a will, but it has to go to probate. So what does.

That I believe that the threshold is the state is 75,000 or more and that’s where you go into court and all the debts are settled up and then it’s divvied up amongst the heirs per the wills instructions.

So yes, and there’s normally an executor to the wills.  

Who and it could cost some money. It can. So, you know, that’s just that’s a pain.  

It is a pain. But I can say that if the surviving spouse is on the deed, then it doesn’t have to go through probate. So that’s nice. That’s nice. You know, after it’s not held.

Up if the surviving spouse is on the will. So what is is on the deed. Is on the deed. Yes. What if there’s. Children. So you have a will. The children divide everything.

Well, it depends. It depends. I mean, if you don’t like one of your children, you can cut them out of the will, literally. Wow. That’s the nice thing is with the will you get to state? This is how I want my estate divided up. I will say that, you know. You’ve got to be careful whenever you draft a will.

I’ve been to enough meetings where I’ve heard lawyers speak about intergenerational transfer, transferring property from yourself to your children and grandchildren.

And let’s say that I left a house to my son, and my daughter gets the Mickey Mantle rookie card that I have stored. That’s in the way, really.

I don’t I know I don’t have that, but I think one of them just sold for $10 million. And so the wills read and my son gets the house and my daughter gets the Mickey Mantle card. Well, I sold them a mickey Mantle card three years ago to pay for hospital bills, let’s say.

So the Mickey Mantle card is gone. My son still gets the house. My daughter gets nothing. So that’s the importance of, like you mentioned earlier, updating that will and making sure this is how it’s going to be divided so that that’s one of the big, big.

That doesn’t really affect us in real estate, I guess, unless not really.  

I mean, unless you’re looking at maybe someone’s going to contest that will because well the Mickey Mantle card doesn’t in the round anymore. I’m going to contest your ownership of the house and so they might be able to slow up the process.

A nice thing with a will is you get what’s called a step up in basis. So I buy the house in in 1985 and I live in it until I pass. And let’s say that that’s going to be in 2050. Well, the market’s kind of changed since then. What’s nice with the will, whenever it’s passed, is the value is placed on that house as cost basis on the day that you pass away.

And so your children, whenever they inherit that property, they can turn around and sell it the very next day and have no capital gains tax whatsoever. It’s because they they effectively inherited it market price and they’re selling it at that same.

Is there a time period? I thought it was two years. 

Something like that, I believe. But that that’s very important. And I think that once a property and this goes beyond even the real estate get involved, but once once a death occurs and if property passes through the will, it’s very important to get our appraiser out and have them appraise that property so that you have a cost basis on the day of death.

Right. Okay. It makes sense. So ask the questions, you know. Do you have a will? Do you have blended families?

Absolutely.  

Are there children? Has the will been to debated?  

Has it been probate? Are you on the deed. So you can probate a will before?

This occurs. Yeah, probably would want to if the House is going to pass through with probate. You just need to make sure the person selling it has free and clear they have the right to sell it. Because the last thing that you would want. Ultimately the title company will probably catch it if there’s a problem and you don’t want it to be held up. No, in.

Title. And I mean, it can be held up for a long time.

It can just depends on how long people want to argue over that property, which can be a long, long time.

Yeah, unfortunately, that happens probably more often than.

It really does. It really does. And that’s what’s that’s what’s sad.

Well, thank you. Thank you for coming. And sorry we had such a morbid topic today, but this is really good information. Remember, ask the questions, talk about the wills.

Don’t just ask how old their AC is. Do you have a will? Do you have it probated? You know, ask probing questions and just say, I just want to make sure that we’re covered and I know how to handle if if something unfortunate comes our way.

All right. Well, thanks for coming. Appreciate it much. And you guys go have a great day. See. Close it out.

Episode Links

intergenerational transfer, Mickey Mantle card, Mike Acquisto , Shana Acquisto , TNT 

Episode Recorded Live on YouTube 08.18.22

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