Gift Deed Royal Legal Solutions?

5 Replies

Hello,

We are in the process of possibly moving forward with RLS. Can anyone offer any feedback (positive or negative) with regard to their service, in particular the series LLC. Did you have to sign a gift deed transfer to Scott Smith as a trustee? Any feedback is greatly appreciated!

@Maia Garcia

I have never heard of them, but it is very unusual for the attorney to ask for a gift deed. What exactly is he asking you to gift to him? Is he asking you to gift him something in lieu of paying for his services for cash? If so, that sounds real fishy...

There is nothing complicated about setting up a Series LLC, as I have done it in the past. It certainly never required a gift deed to our legal team.

No, it’s not in lieu of payment. The deed paperwork just states that the property will transfer using the gift deed to the lawyer (as the trustee) into the trust. I’m going to reach out to the legal team for more answers. Is this similar to how it worked for your series llc? Thanks for the reply.

In Virginia a transfer to a trustee is only exempt if the grantor and beneficiary of the trust are identical (that doesn't appear to be the case here). However, a Deed of Gift is tax exempt... so that is how the asset will be moved tax-free into the trust.

@Maia Garcia

A series LLC and a Trust are different. There is clearly some confusion somewhere... not sure if it's you, the attorney or our communication on here.

Assuming you actually mean trust, it’s somewhat odd to name the attorney as the trustee if you intend to have control. The trustee will be fully in control of the trust assets which is unusual if you are using the structure to further some kind business you are in charge of.

Daniel, I agree...lots of confusion and I believe it is from a lack of clear communication from our legal team. We do intend to keep control of the trust assets and that's why this is a bit confusing.  I appreciate your responses as they have been super helpful! 

Tom,

That may explain why they want to use the gift deed for transfer. Thanks for your response!


Maia