Can an estate be used like an LLC?
4 Replies
Aaron Lenard
Flipper/Rehabber from Midland, TX
posted about 1 year ago
Can a deceased person's estate be used as an LLC by the executor to purchase other properties and conduct business?
Eamonn McElroy
Accountant from Atlanta, GA
replied about 1 year ago
An executor's duty is to settle up debts, comply with all legal and tax obligations, and distribute assets of the estate according to the wishes of the deceased...
What you're describing would probably be a breach of fiduciary duty.
Aaron Lenard
Flipper/Rehabber from Midland, TX
replied about 1 year ago
Thanks for the prompt response.
Would this still be the case if the executor was the sole heir to the decedents estate and is solely using the estate for asset protection?
Eamonn McElroy
Accountant from Atlanta, GA
replied about 1 year ago
That's not how an estate works.
Distribute the net assets according to the wishes of the deceased.
The beneficiary can then put the assets into an LLC or trust.
Aaron Lenard
Flipper/Rehabber from Midland, TX
replied about 1 year ago
Thank you sir.