Athen Apaquette

While this is not a mortgage, I am glad to say I saved one of my long- time clients about $40,000.

This client came in to find out about buying an apartment building in Lomita that was a house with 4 units in the back.  We had determined that to retire in the South Bay, this would be the best way to live for free AND have room for both their elderly mothers.

So in discussing this, the client said as a “Oh, by the way,” I’m going to feed myself onto my mom’s property to protect her equity from fraud and manage her affairs.

STOP the PRESSES.  

What?  You have 3 siblings and they are ok with this?  And by the way, were you planning to sell this home when she passes?  Well, guess what?  If you inherit her property, her sole asset, it’s tax free.

If you are on title and have rented it out, guess what?  You owe capitals gains and will pay Uncle Sam $40,000+ in tax.  Oops.

Best to create a trust for her, be her trustee, and put another sibling on to minimize the blame game when she passes.

I love when people tell me their plans before they make huge, costly mistakes so I can help them avoid them.  Yes, he was grateful to avoid a $40,000 tax hit and have a plan for a financially healthy retirement.

If you are interested in getting set up for your retirement with property, give me a call on my cell before jumping in.