Take These Steps When Administering an Estate With an LLC Interest in Real Estate
During the creation of an estate plan, some people opt to use limited liability companies to hold titles to real estate. There are a variety of reasons for doing so, including personal liability protection and the avoidance of probate. Regardless of reasoning, when your loved one has passed and you are tasked with the responsibility of administering their estate. You must act properly in order to deal with the limited liability company (LLC) interest.
Three Necessary Actions for Administering an Estate With an LLC and Real Estate
As the person in charge of administering the estate, you are likely wondering what comes next. The answer to this question often lies within the LLC’s documents. Consider taking the following actions:
- Carefully review the terms of the LLC’s Operating Agreement. Often, the terms of this document will dictate what is to happen with the real estate.
- Within the terms of the Operating Agreement, it may state that a living trust has an ownership interest in the LLC. In these cases, it is also important to carefully review the terms of the trust in addition to the Operating Agreement. It may ultimately be the terms of the trust that dictate what is to happen to the real estate.
- In some cases, the decision as to what should happen with the real estate will lie with the remaining members of the LLC. In these cases, it will be important to determine whether your loved one’s estate is entitled to a portion of the value of his or her membership interest prior to death.
While administering an estate can seem like a complex process if you have not done it in the past, you do not have to navigate this path alone. We are here to help. We can assist you with a smooth and efficient transfer of your loved one’s assets. Check out the words of our many previous clients in our client testimonials page today.