Can single member LLC protect your primary residence?

Question

A friend of mine have real estate in WA state which is our primary residence ..she owns this property free and clear ..no mortgage

She does not have any other property. She is single.

I heard that one can create single owner LLC  and put her primary residence to protect against possible future lawsuits?

Can you please more info/advise on this?

Leen Sha · Answer

Yeah but that accident happened back in 2015 so buying additional insurance wont be of any help.

John Thedford · Answer

If homestead is only 125K buy insurance.

Leen Sha · Answer

125k

John Thedford · Answer

What are homestead protections there? For instance, in FL there is no cap on value. That is why OJ bought in FL.

Thomas S. · Answer

Stick with adiquite insurance. A LLC is no better protection and even inside a LLC th einsurance will still be th efirst line of defence. In most cases a LLC is a second layer of protection which may likley never me used.

Cody Evans · Answer

I don't have experience in this but people often bring up insurance policies versus LLCs when discussing protection. You may want to make a post in the insurance forums about using an LLC versus a certain type of insurance.

Lance Lvovsky · Answer

You would lose homestead if putting the property in an LLC. If worried about lawsuits, there are a myriad of other ways to protect yourself.