Protecting What You’ve Built: Is An LLC The Missing Piece In Your Minnesota Estate Plan?

In this article, you can discover…

• How owning real estate personally vs. through an LLC impacts Minnesota estate planning.
• The steps required to transfer private property from your name to an LLC.
• The value of allowing an estate planning attorney to help you with this process.

How Does Owning Real Estate Through An LLC Differ From Holding Property In My Personal Name For Estate Planning Purposes?

Holding real estate through an LLC protects your estate from liabilities. In other words, it would protect the rest of your assets if something were to happen on that property, such as an accident or an injury.

I recommend transferring a property to an LLC if you’re going to be renting it, if you’re going to be using it as a VRBO, or if you’re going to regularly have other people staying in or on that property. This ensures you’re covered under the property’s insurance, as opposed to any of your other assets.

What Steps Are Required To Properly Transfer Real Estate Or Business Assets Into An LLC?

First, we will need to set up the LLC. We also need to make sure that the asset (such as a vacation home) is transferred to the LLC, that the transfer document is recorded, and that the LLC continues to stay active to ensure that the property (and your estate) continues to benefit.

What Common Mistakes Do Property Owners Make When Forming Or Funding An LLC On Their Own?

While most people can handle setting up an LLC on their own, it can be difficult to set up a mechanism to transfer that LLC to the next generation. Without that protection, spouses or heirs can be exposed to liability should a lawsuit be filed by anyone staying on or renting the property.

This is where an estate planning attorney can be especially helpful, to make sure the LLC remains active and shields your family (and your estate) for years to come.

Still Have Questions? Ready To Get Started?

For more information on LLC estate planning in Minnesota, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (763) 270-1571 today.