Posted by Rich-CA on January 21, 2008 at 15:38:48:
You cannot protect your property because whatever means you have to hold ownership, you are still the owners and as such they are on the table. Here’s one situation where having co-owners really help since in some states the court cannot dissolve the company and sell its assets to pay off the judgment since that would hurt an innocent 3rd party.
NYC Pr Residence to Full Rental Options - Posted by NYInfo
Posted by NYInfo on January 21, 2008 at 12:50:08:
I currently own a 3 family home in Queens, NYC which is my primary residence. I solely own the property and have recently married. My wife and I plan to purchase a new residence to start our family and want to keep the 3 family unit for the rental income.
I am concerned about acquiring an additional home jointly with my spouse while I still own a 3 family rental property. Does the rental potentially present a liability by which a judgment or lawsuit could jeopardize a newly purchased home? or other assets?
Secondarily both my spouse and I are in the medical profession and even with medical malpractice insurance there is always a risk of litigation extending into the personal assets. This is another variable which concerns me.
What are the some of the options to separate the rental property to provide some protective measures?
Re: NYC Pr Residence to Full Rental Options - Posted by Frank Chin
Posted by Frank Chin on February 18, 2008 at 10:13:39:
I live in Queens NY, owned 2 and 3 families.
In this simple case, I would have one spouse on the deed of the new home, and the other on the deed of the 3 family, particularly the one who’ll be managing it.
Putting the rental property into an LLC is OK, but lawyers will sue the “owner” as “manager and operator” in the case of negligience, sidestepping the LLC. It will be useless in workman’s comp cases where an uninsured contractor gets hurt, and state law allows getting after owners, personally.
Separation of assets will create a firewall on top of good insurance.
Frank Chin