Scott Rickenbaker

In South Carolina, I want to leave one of my rental houses to a tenant upon my death. Besides including that directive in my will, what other actions need to be taken? I don't want to create any current tax implications or changes.
Thanks

A will has no effect until you pass away and the will is admitted to probate. Therefore, there are no tax implications now. (Not sure what you have in mind when you mention "changes.")

My goal is to make sure that the tenant can remain in the house after I'm gone without the risk of eviction. The house has a mortgage on it and she can and will make the mortgage payments. I was thinking in addition to the legal will, there may be a need to do some sort of deed work which could have current tax implications

Thanks

anteater said:

A will has no effect until you pass away and the will is admitted to probate. Therefore, there are no tax implications now. (Not sure what you have in mind when you mention "changes.")

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**A: when he kicks, that will surely result in a change.

srickenbaker said:

My goal is to make sure that the tenant can remain in the house after I'm gone without the risk of eviction. The house has a mortgage on it and she can and will make the mortgage payments. I was thinking in addition to the legal will, there may be a need to do some sort of deed work which could have current tax implications

Thanks

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Your plan will probably not work. The mortgage holder will need to agree to the change in the ownership. They are under no obligation to due so, even if the payments are being made. In fact, your death may cause the entire amount remaining on the mortgage to become due.

Zigner said:

Your plan will probably not work. The mortgage holder will need to agree to the change in the ownership. They are under no obligation to due so, even if the payments are being made. In fact, your death may cause the entire amount remaining on the mortgage to become due.

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Eh? The mortgage holder has no say in ownership changes. However, since the heir is not a relative, the preemption on the due-on-sale clause, it is the case that they can call the loan.

Further, just because you put something in you will doesn't mean it's going to happen. Heirs only receive things after the obligations of the estate are met. It would behoove you to talk to an estate planning expert.

I can't imagine any sort of life estate that involves them continuing to pay you rent while you are alive.

A longer term LEASE may be a better option. Just because you die doesn't invalidate the lease.

Good suggestion. I had not thought of a long term lease. Thanks FlyingRon