Updated almost 3 years ago on . Most recent reply
Land trust and LLC questions
Hi all,
I looked up some of the discussions on land trust and still have a few questions so asking for clarifications.
Here is my scenario: Have a few rental properties, most with loans and few no loans. Currently all of them are under our revocable family trust as owner. I would like to put them under LLC - the goal being liability protection. While I can do so for properties without loans, I am wary of moving the ones with loans into an LLC as that may trigger the bank to treat it as a sale. The properties are in different states.
From discussions what I understood is that the steps are:
1. Create a land trust : One for all or one for each?
2. Create an LLC: One for all or one for each? Should they all be in same state? Matters?
3. Make LLC a beneficiary of the land trust
4. Move properties currently under family revocable trust name to individual land trust.
Did I get is right? Any tax implications in doing this?