LLC Or Trust In MA
Hi all,
Just looking for opinons on whether to put a property I intend to rehab and resell into an LLC or a trust. This may differ by State. I am in MA. Just wondering what the conventional wisdom is. Pros and cons of each...
Thanks!
I've heard the following ;
Put the property in a trust, and make your LLC the beneficiary of the trust.
Now you don''t have to choose.
If your concerns are related to tax implications, consult an accountant. If it's liability, you can consult with an attorney. These professionals should be able to give you good advice that will appropriately address your needs.
Jeff
Hi Jeff,
I consulted a cpa and the tax implications are identical. However your idea of of an LLC and a trust are interesting. If I set up a parent company as an LLC and each property as an individual trust with the LLC as beneficiary what are the main benefits? Is there added protection from lawsuits in regards to the property? Is this a strategy your atty suggested?
Thanks
You need to use the NOMINEE TRUST in Massachusetts. I just took a course on this with one of the most successful investors in this state.
Land trusts are ILLEGAL in this state, no matter what anyone tries to tell you.
Use the nominee trust to acquire, hold and dispose of real estate. How to use that trust is something I HIGHLY recommend you going to a meeting where Al Kosinski is speaking, go to http://www.nereig.com
You must talk with him before you approach an attorney to help you set one up, and it will make sense to you once you pull him aside at 10:15pm after he is done speaking and ask him about it. Good luck, Dave
Hi Dave,
I go to the Stoughton meeting each month. I know Alan is a big fan of Trusts. He does say however that you need to be careful how you set them up...that they are set up properly. I haven't taken his trust seminar but was debating it. Did you get a lot out of it? My atty does not promote one over another (LLC/Trust)