I often work with families in San Antonio, Texas, who own rental homes or multiple pieces of real estate, inside of an LLC. These families typically want to transfer that real estate to their trust which involves preparing and filing a new Warranty Deed in the county where the real estate is located. When your real estate is already owned by your LLC, it simplifies the entire transfer process. Instead of transferring each piece of real estate individually, one transfer of the ownership interest in your LLC can be made to the trust. This transfer will probably not disturb your existing business structure in any way; however, it would be advisable to check the partnership agreement or LLC organization agreement.
Establishing an LLC simplifies the process of transferring assets to your children. When you die, the individual you have chosen will step into your shoes and manage your LLC and all of the assets owned by the LLC, without having to go through the probate process.
If you own an LLC, and do not adequately plan for the control and disposition of your LLC and its asset upon your death or incapacity, you may be leaving behind a mess for your heirs. Without proper planning, your LLC member interests pass through the probate court process or intestate probate law, if there is no will.
There are a lot of different uses for an LLC if you own real estate. Sure, there is liability protection, but there is also a lot of simplicity in transferring the real estate from one generation to the next. If you own real estate and you want to make it simple for your family, give us a call 210-202-1141.
Leave a Reply