Posted by Scott (ATL) on September 20, 2007 at 12:24:18:
Well, from my understanding I and my partners are less visible if the title is held in a trust entity plus the trust is a private document. I know it doesn’t offer liability protection but from a public record stand point it is more anonymous.
I will be holding the financing while my other two partners will live, pay and reap the tax benefits. I’ll offer this to them as an equity split so it will keep their current payments low. Down the road I can see a buyout of one or more partners or simply selling to close out all three and I will be looking for a 1031 exchange but my other partners probably will not.
I have an LLC currently that holds some property and I really don’t want to put another property in this entity but I believe that if this LLC is a beneficiary of this property I’m less vulnerable as my LLC won’t be front and center with a portfolio of properties. In other words if I have 3 properties titled in one LLC and something happens at one property my LLC is easily identified as having 2 other properties and more of a “big fish” to fry.
This is at least my interpretation as I haven’t really done a great job at “protecting” my assets.
Best use of land trust and partnership - Posted by Scott (ATL)
Posted by Scott (ATL) on September 19, 2007 at 12:30:01:
I have a property that is currently held in my name and I plan to transfer it to a land trust. Mainly for privacy and for estate planning. My LLC would be a beneficiary for the liability protection but my question is how best to incorporate 2 other partners in an equity sharing deal.
Should we have one LLC beneficiary that outlines the partnership and the ownership split in the trust. Or should each entity (LLC for me, individual for the other two) be named beneficiary and the scope of the ownership be outlined in the trust document.
Basically, all three of us want to make sure it stays between us and no other parties can lay claim especially if something happens to any of the partners. We want to make it easy for tax purposes but at the same time protect our interest and I’m not quite sure the best way to set this up.
If anyone knows a good/well versed “land trust” and estate planning attorney in Atlanta I’m all ears!
Posted by Garrett on September 20, 2007 at 09:41:32:
The first question is why use a land trust at all? The LLC can provide the privacy you want and is better for estate planning purposes. That said, whether you use one LLC for the three of you (less expensive) or one LLC to hold each of your interests as tenants in common depends on your goals. If each of you wants to do your own 1031 exchange in a year you will use the three separate LLCs. 1031 proceeds will be allocated to each LLC, which can then buy your next property.