Purchasing in a 55+ Community - AZ
Hi, Been lurking here for some time, figured now is as good a time as any to make my first post. For the past couple of years we've rented a park model in a 55+ community and we think we're rea...
Forum Discussion
I am an attorney, although not in Arizona and state laws can differ.
First, the proper way for property to pass on from one co-owner to another after death is for the property to be titled with the names of the co-owners listed as joint tenants in common with rights of survivorship. That way, the property stays out of any probate and need not be listed in a will.
Second, listing children's names on any asset is NOT the way to transfer property after death. That makes anything you own theirs and vice versa. If a child declares bankruptcy, then your asset becomes theirs to pay off creditors. If one of the children has an at fault accident with damages that exceed their insurance, your asset will be seized. Upon death, the children loose the one time step up in basis to figure capital gains taxes. It is just all around a bad idea.
HOA covenants are fully enforceable, and sometimes have more teeth than any local laws because they are agreements that both parties have willingly entered into. I bet the HOA covenant does not prohibit any aged person owning property in the development, but rather prohibits under aged 55 residing in the development except for short visits that are thoroughly explained.
My personal non legal advice to the OP is to buy whatever asset you want, be it a car, RV, any real property, or this 55+ development and title it in you and your spouse's name with real property listed as joint tenants in common with rights of survivorship. Then specify in your will how all of your assets will be disposed of upon your death.
First, the proper way for property to pass on from one co-owner to another after death is for the property to be titled with the names of the co-owners listed as joint tenants in common with rights of survivorship. That way, the property stays out of any probate and need not be listed in a will.
Second, listing children's names on any asset is NOT the way to transfer property after death. That makes anything you own theirs and vice versa. If a child declares bankruptcy, then your asset becomes theirs to pay off creditors. If one of the children has an at fault accident with damages that exceed their insurance, your asset will be seized. Upon death, the children loose the one time step up in basis to figure capital gains taxes. It is just all around a bad idea.
HOA covenants are fully enforceable, and sometimes have more teeth than any local laws because they are agreements that both parties have willingly entered into. I bet the HOA covenant does not prohibit any aged person owning property in the development, but rather prohibits under aged 55 residing in the development except for short visits that are thoroughly explained.
My personal non legal advice to the OP is to buy whatever asset you want, be it a car, RV, any real property, or this 55+ development and title it in you and your spouse's name with real property listed as joint tenants in common with rights of survivorship. Then specify in your will how all of your assets will be disposed of upon your death.
