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Updated over 3 years ago on . Most recent reply

User Stats

9
Posts
9
Votes
Rossi Rose
  • Investor
  • Virginia Beach, VA
9
Votes |
9
Posts

Renting out Minor Grandchild property

Rossi Rose
  • Investor
  • Virginia Beach, VA
Posted

Hypothetically - this is in Virginia but most states adopted the federal laws  

 Owner - Grandparent 

Heir - Grandchild

Parents - NOT involved

Rent collection after death - Friend

Property guardian - assigned 

If rental property is left as inheritance  to minor GRANDCHILD  -

after the death of the grandparent :

-to be transferred to the grandchild when he reaches 18 - Deed in place , 

- to be rented  until then - 

- the rent to be collected on the behalf of friend , claimed by the friend as rental property for tax purposes, and the friend pays taxes on the income.

Question - Is this possible and what will be the issue in this case scenario?

The Parents are NO involved at all, There is NO Trust , NO will - it will be done directly with Deed on the behalf of the minor GRANDCHILD and  appointed property guardian to manage the property and distribute the rental income to the friend.

I am just trying to understand  my options before I talk to a  lawyer and CPA . 

Thank you

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