My house is in the probate process of being transferred to me and a family member. The family member is younger than me so, therefore the financial stuff will fall on me. Trying to look at options to fix up the house that has the least amount of risk. There are a lot of repairs that need to be done. I don't really want to sell because its a family home, there's a lot of sentimental value, and its located in a neighborhood going through a lot of gentrification in the Philadelphia.
I want to find out if putting the house in an LLC or trust will minimize my risk as well as property taxes. Again, I'm not selling because we will rent it out soon.
I'm hoping the cost of borrowing against the house to fix it up won't become greater than its worth. Please help. Need great advice.
Real Estate Agent · Sacramento/Placer ~ San Francisco Bay Area counties · Member since 2012 · 1k+ posts · 743 votes
5y
This is not legal advice but consult an estate planning attorney in regards putting the home in a irrevocable trust after the probate administration has concluded @David Walker
Investor · Tucson, AZ · Member since 2017 · 208 posts · 235 votes
5y
Some of the best and most simple advice I've ever received on the subject is this:
A Trust is used to avoid probate. A (properly set up) LLC is used to avoid lawsuits. And, yes, you can use both at the same time.
I'm not an attorney so I would suggest you speak with one on the subject, however it sounds like an LLC is more along the lines of what you want for the period of time you may be doing fix up work on the property.