QUESTION
LLCs property funded into Trust? Title to prop recorded in the name of the LLC. LLC docs show ownership in the names of either husband or husb/wife
Asked on Jul 18th, 2013 on Corporate Law - California
More details to this question:
No reference to the Trust (LLCs formed before Trust). Trust Schedule of Assets list all shares in the LLC a line item. Adequate for both LLC and Trust? Should there be an amendment to the LLC stating property is funded into the Trust? LLC did not issue share certs. to husband/wife since it is a disregarded entity and owners own 100% of the shares. Should share cert. be issued showing all shares of the LLC transferred to husband or h&w then transferred to trust? Is there a code section or sections that deal with real property transfers from LLC to Trust or language in LLC docs and/or Trust docs?
1 ANSWER
Many LLC Operating Ageements include restrictions on transfers. As a single owner LLC, you might not have any operating agreement, and if you have one, it might be very short and omit such restrictions. If there is an operating agreement and it has such restrictions, then comply with them. Same for any other assets transferred to the trust. Banks, insurance companies, and stock brokers all have their own rules for transferring assets and accounts on their records. Find out what they want, whether they have forms they want, and comply.
LLC member certificates are not required. The LLC's records of who owns it count.
Dana Sack
www.sackrosendin.com
ds@sackrosendin.com
510-286-2200
Answered on Jul 21st, 2013 at 4:51 PM