LLCs And Your Estate Plan
Now that you are retired and the mornings you spend scrolling through news headlines are longer than they used to be when you were working, you have started to become aware of the go to headlines that seem to pop up whenever it is a slow news day. It seems like, every few weeks, a freelance writer writing for a major news site wants to tell everyone about the various business structures that they might choose when starting a new business venture. Even though your entrepreneurship days are mostly behind you, you sometimes click, just to reminisce about what it was like to be new to the world of business. Today, as when you were first starting out, business journalists seem to come out in favor of the limited liability company (LLC) business structure. The Internet seems to think that an LLC is an invisibility cloak that can protect you from liability from all business debts. You already have an LLC, and you have learned from your mistakes to the extent that you no longer need the usual slow news day advice about why an LLC is the best business structure. You, however, have some grown up questions about LLCs. For help understanding how your LLC fits into your estate plan, contact an Orlando estate planning lawyer.
Is an LLC a Probate Asset or a Non-Probate Asset?
It is possible to inherit a family member’s share of ownership in a business; the probate courts have ruled on bitter disputes over this matter. Unlike trusts, businesses are not non-probate assets by default. Unless there is a reason for your ownership interest in a business to pass to the successor owner outside of probate, the business becomes part of your estate, and it is a mess.
One reason for the popularity of LLCs is that they are customizable. Every LLC has a unique operating agreement. Your LLC is a probate asset or a non-probate asset depending on how you categorized it in your operating agreement. If you stand to inherit someone else’s ownership interest in an LLC, its operating agreement determines whether you will have to wait until the estate settles.
Is It a Good Idea to Buy a House in the Name of an LLC?
It is possible to buy a house in the name of an LLC; real estate investors do this all the time. Some LLCS exist for the main purpose of buying residential real estate properties and renting them out. It is also possible to buy a house in the name of your LLC and rent it out, but doing so will probably cause more problems than it prevents. Regulators may begin to suspect that you are using the LLC as a shell corporation and subject you to even more scrutiny than they would if you bought the house in your own name.
Contact Gierach and Gierach About Estate Planning for LLC Owners
An estate planning lawyer can help you use your LLC to simplify your estate plan. Contact Gierach and Gierach, P.A. in Orlando, Florida to discuss your case.
Source:
northwestregisteredagent.com/llc/buying-a-house#:~:text=Yes.,tax%20implications%20that%20can%20develop.
