One of the ways that people in Connecticut seek financial stability is investing resources with the intention of generating a viable stream of income. Some people invest in stocks or in a business owned by someone they know. Others may decide to start their own organization.
Quite a few entrepreneurs buy residential real estate with the intention of becoming landlords. Landlords can potentially build equity in properties without paying mortgage costs themselves and might even be able to charge enough in rent to earn a little profit every month. Those who have purchased investment properties have financial obligations and personal responsibilities that far exceed the requirements placed on the average adult.
Those who have rental properties, even if they are still quite young, may need to consider estate planning because they have two unique issues they need to address even if they do not yet have a spouse or any dependent family members that will require financial support when they die.
Financial management of specific resources
Tenants at a property depend on their landlord to keep the mortgage and other financial obligations for the property current. They will submit rental payments every month that the landlord will apply toward the mortgage and other basic costs, like property taxes. The average landlord can benefit from drafting power of attorney paperwork to ensure someone can perform those tasks if they cannot. Powers of attorney allow someone to name an agent they trust to manage their financial affairs. The agent selected by a landlord can collect rent from tenants, pay loans secured by properties and even manage repairs and other necessary transactions when a landlord becomes incapacitated.
Distribution of real property
Landlords, like anyone else, might live long and healthy lives or experience some kind of emergency that leads to premature death. The real property that they have acquired will need to pass to other people after a landlord dies. Given that they do not inhabit the home themselves, clear testamentary documents outlining who should inherit the property will usually be crucial to ensure the appropriate descent of investment property after someone’s passing.
Anyone starting out in the residential rental market will likely want to consider creating or revisiting their estate plans to optimize their personal protection. Having the right inclusions in estate plans can give people greater peace of mind throughout their lives regardless of their personal financial circumstances.