I bet you've never heard this one before...

[Dwight M.]

I have 21 units and have recently formed a Series LLC for all 21 units. That has gone smoothly with the exception of one unit that I have my disabled brother living in. I have placed 50% ownership of that one unit in a Special Needs Trust for him and the other 50% ownership in my trust. Prior to me putting 50% of the unit into a special needs trust for him I charged him rent. Now that it is in a Special Needs trust my attorney advises that it would not be a good idea to charge him rent because some of his disability check would be funneled right into his his special needs trust. I completely agree with the advice and I'm perfectly okay with not charging him rent.

My concern is that by treating this property differently from all the other units in the Series LLC, I may be opening myself up to a situation where I'm weakening my LLC protections even if I keep the financials separate and in order. Should I be sued I feel like an attorney would be able to craft an argument that would convince a judge to let them "pierce the corporate veil" and open up exposure to all of my properties. 

Any thought on this very unique situation? Thanks in advance.