Business Market Report

Older couple being pushed to put property in LLC

Ilyce Glink and Samuel J. Tamkin

Concerns with estate planning are best handled by talking to an attorney.

Q: My wife’s youngest daughter is concerned about how we have set up our estate. We own three properties in Southern California and use two as rentals to supplement our retirement. All three properties are held in our living trust.

The trust states that each of our 6 children (aged 35 to 52 years old) have the right of first refusal to buy any of the houses, and, if they do, they will have to pay off their siblings. Our youngest daughter was told that it would be better if the properties were held in an LLC and have the name of one of our adult children on title with us.

Is that a good idea? Are there any advantages or disadvantages to doing this (besides creating jealousy among them)?

A: We don’t agree, for a number of reasons.

Let’s start with the obvious: You seem to have a plan in place that you liked when you set it up and apparently still works for you. We don’t know why you’d want to make a change when something is working and we’re not sure why you’d want to put those properties into a limited liability company (LLC). You will have expenses in setting up the LLC and transferring those properties to the LLC.

Read More:Older couple being pushed to put property in LLC

2021-11-14 12:24:10

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