4 WAYS TO HOLD REAL ESTATE FOR HEIRS, WITHOUT THE RISK OR HASSLE
Real estate can be one of the best multigenerational wealth building and preservation tools, but how do you hold it, and give it, without the risk or headaches?
1. Turnkey Property Management
The options and best strategy for holding and passing on real estate assets really depends on what type of property it is. For those owners of newer NYC condos or co-ops the easy answer may be simply to enroll a turnkey property management company who can go on taking care of it. This can provide a seamless transition and management across generations without worrying about how heirs will manage it.
2. Long Term Leasehold
A classic Sol Goldman strategy; offering a long term leasehold means eliminating the costs and management associated with holding a property, while retaining ownership, long term value gains, and income. On just one NYC office building the Goldman estate collects $2.7M per year.
3. Sell or Gift, with Life Estate
In some cases it is actually personal use of the property or providing a home for heirs which is the top priority. In this case consider selling or gifting the property to charity now, while retaining a life estate you, your partner, or children.
4. Lease or Sell Off Use Rights
There are many parts to a NYC property. This can include air rights, access rights, development rights, oil and mineral rights, and more. Those are often effortless to hold onto as assets. Or they can be leased or sold to cover property taxes and other holding costs on the property improvements. Consider holding the retained assets in a trust or foundation.