Posted by John Merchant on January 05, 2003 at 12:26:24:
While I won’t get into WHICH entity or grantee to use, NOW is definitely the right time to plan.
Glad you don’t have problem now, so now’s the time to act.
IIWY (if I were you) I’d sure talk to some estate planning lawyer about HOW to go. Get recs from several lawyer re this-it’s a legal specialty lots of lawyers do not like, so you can probably get some honest reactions and recs.
Title transfer to LLC - Posted by Mike
Posted by Mike on January 03, 2003 at 17:50:41:
If I transfer title to a rental property to a land trust and then assign my beneficial interest to my LLC, how do I insure the LLC without alerting the bank? I know that you can write the insurance company a letter explaining that the property has been placed in a trust and add the trustee as an additional insured, but what about the LLC? If the LLC is not on the policy then I am effectively not insured right? Furthermore, what prevents a judge from declaring my transfer of beneficial interest to my LLC a fraudulent transfer (in the event of a lawsuit) since I didn’t recieve any consideration for it? Thanks in advance for your help and time.
Mike (VA)
Re: Title transfer to LLC - Posted by JHyre in Ohio
Posted by JHyre in Ohio on January 04, 2003 at 08:41:38:
The insurance has been oft discussed on the MNG and is more of an investment as opposed to legal issue. If the transfer to the LLC occurs BEFORE any problems are likely, there was no intent to hinder creditors, hence no fraudulent transfer.
John Hyre
Re: Title transfer to LLC - Posted by John
Posted by John on January 04, 2003 at 07:39:08:
I am transferring title of my rental properties to my LLC with a “Quit Claim Deed”. I am doing this to protect my personal property should I be taken to court over someting that happened in/at one of my rentals. I am also considering using the Quit Claim Deed to give my wife our personal home. She is not a member of the LLC. Aside from what some would say could be a problem should we split, will this protect my personal residence? I live in Michigan and all our property is in Michigan. John
Re: Title transfer to LLC - Posted by Mike
Posted by Mike on January 03, 2003 at 18:06:31:
P.S. I have searched the archives (so please don’t banish me there) and am aware that this can be done, but my concern is that the insurance company will notify the bank and they will call the loan due? Is this a concern or is there another way to go about this?
Thanks again,
Mike (VA)
Re: Title transfer to LLC - Posted by John Merchant
Posted by John Merchant on January 05, 2003 at 10:25:25:
“I am doing this to protect my personal property should I be taken to court over someting that happened in/at one of my rentals.”
If “something’s” already happenened, it might be too late for you to protect your assets by re-titling them. Any conveyance now might well be set aside as fraudulent attempt to avoid creditors. Suggestion: if the “something” is worrying you, get thee to a good lawyer now and get legal advice as to whether there is anything to be done before you’re sued.
Re: Title transfer to LLC - Posted by Prosperity Group LLC
Posted by Prosperity Group LLC on January 05, 2003 at 09:03:54:
John in Michigan, why are you giving your wife your personal home? Why not just make another LLC or a trust and put the property in there? If she were to ever leave you, she’d take the house. Should anything happen to her, you would most likely need to go through probate to get the house I believe.
Title Transfer to LLC - Posted by John
Posted by John on January 05, 2003 at 12:18:50:
John, Nothing has happened or is in the wind. I’m thinking ahead, “just in case”. If I understand correctly, putting my properties in an LLC, before anything happens is a good idea. Is this accurate?
John
Re: Title transfer to LLC - Posted by John
Posted by John on January 05, 2003 at 12:25:33:
Let’s say I put my home in an LLC, with my wife and I as a members, and have a different LLC for investment properties. I am also a member of this LLC. With me being a member of both LLC’s is my home in jeporady should something happen with my business LLC? John