QUESTION

How do we add spouse's name on a commercial property which is held in a LLC?

Asked on Jan 17th, 2012 on Estate Planning - Maryland
More details to this question:
We would like to add the spouse's name on a commercial property which is held in a LLC.
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6 ANSWERS

Estate Planning Attorney serving Madison, WI
Partner at Horn & Johnsen SC
1 Award
The most simple option would be to revise your Operating Agreement and other corporate documents, adding your spouse as an additional member of the limited liability company.
Answered on Feb 01st, 2012 at 10:48 AM

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Estate Planning Attorney serving Henderson, NV
Partner at Grant Morris Dodds
2 Awards
When property is held in an LLC, in the State of Nevada, only the name of the LLC appears on the deed. The names of the people who control the LLC are not listed on title for the real property owned by an LLC. The persons who control an LLC are either the "members", who are the owners, or the "manager", who is the person who acts on behalf of the LLC. The manager need not be a member. In order for a additional person to have control of the property, that person must be named as a manager, in the case of a manager managed LLC, or that person must become a member/owner in the case of a member managed LLC. The controlling members and managers are updated every year as necessary with the annual filing made to the secretary of state. However, it is possible to prematurely file an updated managers or members list in order to show the additional person as a person who has been added as a controlling member or manager, as the case may be. Once the filing with the Secretary of State is complete, any entity, e.g. a title company, dealing with the LLC with respect to real property will then need to deal with the prior and newly added manager or member with respect to the real property held by the LLC. Thus, if the LLC intends to sell the property, the title company will then require all registered members or managers, as the case may be, to sign off on any sale of the property by signing the deed of conveyance on the property being sold.
Answered on Jan 31st, 2012 at 8:24 PM

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The best way would be to transfer a membership interest in the LLC to her. Make sure before you do so that it wouldn't violate any loan on the property and that you have considered the potential effect on creditor protection and divorce.
Answered on Jan 31st, 2012 at 6:13 PM

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Probate Attorney serving Las Vegas, NV
3 Awards
That is a complicated question. Since the LLC owns the interest, the question is whether the spouse is to be added as an owner to the LLC or not. If the member making a gift to the spouse? If the spouse is to be added to the LLC as a member, then the operating agreement would need to be consulted to determine if that can happen. Some LLC's do not allow transfer of membership unilaterally. If the spouse is to receive ownership in the real property not as a member of the LLC then that is more complicated. You should review your LLC operating agreement and articles of organization. It will probably be necessary to have minutes drafted to address the situation. You may need to consult an attorney to draft the necessary paperwork.
Answered on Jan 31st, 2012 at 6:13 PM

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You would sell or assign or give the spouse a member interest in the LLC; check with your tax advisor concerning this step; also this will change the control of the business, so it might be well to discuss this with the attorney who advises the business.
Answered on Jan 31st, 2012 at 6:12 PM

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Alternative Dispute Resolution Attorney serving Baltimore, MD at Whiteford, Taylor & Preston L.L.P.
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Depending on the terms of the LLC operating agreement, you may be able to transfer an interest in the LLC to the spouse. The spouses then could be the owners of the LLC, which in turn would own the property.
Answered on Jan 31st, 2012 at 6:09 PM

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