Make Trust LLC Member?

[Murlie Keller]

We are going to put our rental properties in a Series LLC. How do I pass the properties to my heirs? A Beneficiary Deed won't work because an LLC doesn't die. Does the Trust become a member of the LLC? Should it be the only member? If so, the LLC becomes a single member LLC which is less desirable than a multi member LLC. Your thoughts and advice appreciated.

[Scott Smith]

@Murlie Keller Hi Murlie,

For real estate investors who may be buying and selling assets frequently, it is important to know that you would normally update your estate plan each time you make a significant purchase or sale. This could present a challenge for an active investor with many properties, but the problem can be easily addressed by using a pour-over will. The pour-over will passes all property you own into your living trust upon your death.

For the real estate investor, a pour-will pairs well with the living trust to ensure a smooth, private transition of your assets. Using these tools together is a smart tactic for a clear, easy-to-follow business succession plan that you direct.

If you have more questions feel free to leave a reply or DM me.  Hope this is helpful information for you. 

@Armand Wolfe Hi Armand, 

You can have a Series LLC set up in another state and use it to hold assets (properties) that are located in any state. For example you can set up a Series LLC in Texas and have a child series/land trust hold property located in Colorado.

Please let me know if there are any other questions I can help with!

- Scott