Seeking advice - passing down rental properties to children

[Tim T.]

Seeking advice or anyone who has gone through with this.

I have a sizable rental property portfolio (80 units) over three states than are all paid off.

I live modestly and have very little expenses, and have reached a point in time in my career where I no longer have the energy to grow my portfolio.

My wish is to hand off day to day management of my rentals to my three children, and evenly share the rental income with them, and eventually pass on all my assets to my children.

Does anyone have advice on how I should proceed?  I have not yet begun talking locally to real estate or tax lawyers, but would like to know if this community can offer me a point of reference.

I have been told by some of my real estate friends that the best option is to move my properties into a business entity and have my children as equal business partners?

Any feedback from this wonderful community will be greatly appreciated!!

[Adam Martin]

I know you mentioned you were going to talk to an estate attorney but that would be my first step.  There are a lot of different options you will have and a lot of variables at play here.  In my mind you are going to need a team including a CFP, CPA, and estate attorney at minimum to start building a legacy plan.  There are many different strategies and they can work together to get you the most tax efficient way to pass onto your children through gifting and trusts but the absolute last thing you want is for you to pass and this go to your estate, that would be an expensive nightmare.  It may be nice for people to share stories but remember everyone's financial situation is different and laws vary state to state, try to get a team licensed in all the states you reside and do business if possible.