Holding property in my name for family

[Igor Messano]

Hi everyone,

Question to hopefully a simple problem. My wife's father owns 2 commercial properties that he has sold the "business" (Tire shop) to someone else but continues to receive the rent for the 2 adjacent properties. He does not live in the US and the properties are currently under his sisters name but she needs them off her name and he has asked us to step in.

Aside from basic family issues that can arise, what are some of the liabilities that we should worry about and how can we structure this to limit them? Would putting the properties in an LLC cover us? We are also afraid of getting hit with taxes related to the rental income since we aren't receiving the proceeds for ourselves.

He lives out of the country for reference.