How Do I Prevent My Heirs From Selling Property Outside the Family?
There are various options, including transferring the property by gift, trust or will. For example, you can transfer your interest into a limited liability company, which will protect your family from a lawsuit if someone slips and falls on that property. It may also provide some level of asset protection.
If you decide to use the limited liability company, you should have rules in the form of an operating agreement that will indicate how decisions will be made with respect to the property, what to do in the event that the property requires maintenance, when additional funds may be needed for the property, when the property should be sold, who will be the manager of the property, etc. By providing explicit terms and conditons, the risk of having disputes that you are no longer around to settle is minimized.
A restrictive covenant is a clause in a deed to real property that the buyer (grantee) will be limited as to the future use of the property. We are prohibited from giving legal advice as this service provdies information of a general legal nature. We suggest you consult a local attorney who can review all the facts and tax implications involved.