LLC in Family Trust or regular 50/50 LLC?

LLC in Family Trust or regular 50/50 LLC?

Member since 2018 · 10 posts · 1 vote

Does anyone have an opinion on whether when a husband and wife are forming an LLC for real estate investment purposes that LLC should be placed in the family trust? Or should it just be a standard 50/50 LLC outside of the family trust?

0Reply
11 views

4 Replies

Jump to latestLatest
  • Attorney and Real Estate Broker · Madison, WI · Member since 2016 · 265 posts · 100 votes
    7y

    Depends on so many things so hard to say unfortunately. As a general rule of thumb the statistical majority of the population of the US does not need a family trust just a will and perhaps a POA, etc. Anyone with non-W-2 income and assets may be more likely to want a trust of some sort in addition to LLCs. I hope that helps somewhat.

  • Lance LvovskyPro Member
    Accountant · Fort Lauderdale, FL · Member since 2013 · 1k+ posts · 753 votes
    7y

    @Terry M.

    A family trust aka credit shelter trust is funded at death. So you may have your terminology mixed up. You are probably referring to a living revocable trust in which case - yes. Your membership interest should be held in your Rev Trust and not in your name.

  • Member since 2018 · 10 posts · 1 vote
    7y

    Hi Ryan and Lance,

    Thank you for your replies... Yes it is a living revocable trust... I have since been advised the the LLC should absolutely be placed in the trust...

    Best

  • Investor · Jonesboro, AR · Member since 2017 · 136 posts · 79 votes
    7y

    @Terry M.

    If placed on a trust I’m assuming they need to be in the operating agreement 50/50?

Join the conversationCreate a free account to reply, vote on answers and follow this thread.