Quit Claim Transfer to LLC but Original Name Required to Remain

[Tom Dieringer]

I have a personally owned SF rental property (my name on deed, my name of mortgage) that I want to transfer via quit claim to my wholly owned, disregarded entity LLC. I preemptively checked with the lender to see if they had any issues with this. They are are fine with it with one exception - I still need to leave my name on the deed. I can add whoever I wish, but my name needs to remain.

I'm doing this for legal protection. I do already have a personal umbrella to back up my rental property insurance. I just wanted another layer of protection. In my opinion, keeping my name on the deed negates the protective benefit of the quit claim transfer and holding the property in my LLC. Am I missing something?

If I'm correct and there is no/negligible benefit, does anyone recommend having an additional umbrella just for the LLC?

Thanks so much for your thoughts.

[Chris Seveney]

@Tom Dieringer

I ask that because people think they need an LLC from some lawsuit. But if you write down reasons why you could get sued 99.99% of them can be resolved through an umbrella insurance policy and/or using a property manager.

If it's a commercial property yes you use a LLC but for 1-4 unit rentals, typically the LLC is just an added expense.

Also people will say well I don't have a Property manager so let me put it in a LLC - well you will be acting as the property manager so if the tenant does sue they sue the LLC and property manager - so you will get sued anyways.