5 Things to Know About LLCs in Your Estate Plan
When it comes to protecting your hard-earned money and property, it is important that you have the right plan, which can include a number of tools for your unique situation. One tool that might benefit you is a limited liability company (LLC) that owns some of your accounts and property.
What is a limited liability company?
An LLC is a business structure that can own many types of accounts and property. The LLC is owned by members who contribute money or property to the LLC. You can have a single-member-owned LLC or a multimember-owned LLC. If there is more than one member, management of the LLC can either be carried out by each member or the members can elect a manager.
What can an LLC own?
When people think of an LLC, they assume that it is a structure to operate a business. However, many types of accounts and property can benefit from being owned by an LLC:
- Real estate. An LLC can own property such as a second home, a rental property, or a property that has been in the family for generations.
- Investments. In some cases, an LLC can be formed to allow multiple people to pool their money and invest it with a larger volume.
- Expensive and risky property. An LLC can own items such as airplanes and boats.
Why should I consider using an LLC in my estate plan?
Because the LLC is a separate entity, typically the LLC’s creditors can only go after the LLC’s money and property, not the member’s personal accounts or property. Also, if the proper formalities are in place, the member’s personal creditors may not be able to reach the LLC’s accounts and property to satisfy the member’s personal debts. Note: […]