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March | April | 2015 CCIM.com
Another benefit is that an LLC is not
required to maintain records such as min-
utes, bylaws, or shares as is required of a cor-
poration, so there is no chance of piercing the
corporate veil for failure to follow prescribed
formalities. Each state's legislation is specif c
on the required steps to create and use an
LLC, so local legal assistance is necessary.
When a property is owned by an LLC, only
the assets of that LLC can be used to satisfy
a claim. Other assets are protected. T is is
important as it allows individuals to hold
real estate without exposing other assets to
risk. When multiple properties are involved,
although more costly, it may be worthwhile
to hold each property within its own LLC
in order to isolate each property from the
liability of other properties. In some states it
also is possible to establish a series LLC that
is designed to protect each property within
a single LLC.
Other strategies can be enacted with legal
help. For example, property may be titled in
a land trust with an LLC, corporation, or
limited partnership plus corporation as the
benef ciary of the land trust. T ereaf er, a liv-
ing trust may receive the property upon the
owner's death. Use of multiple layers requires
the use of an attorney who is an expert in
asset protection planning.
Finally, domestic asset protection trusts
are currently permitted under the laws of a
number of states. T ese are typically estab-
lished by wealthy individuals and those in
high risk occupations, such as doctors and
real estate developers, due to their net worth.
In all cases, investors should consult a
personal legal adviser for guidance on asset
protection strategies. T ese strategies should
be tailored to their personal situation and
needs.
Mary Stark-Hood, JD, CFP, is president of the
Hood Group, Inc., and serves as a consul-
tant to the CCIM Foundation. Contact her at
maryshood@comcast.net.
This article is
sponsored by the
CCIM Foundation
@ www.ccimef.org.
CCIM Chapters and CCIM Foundation offer
Real Estate Gifting Education
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disposition strategy for challenging properties, as well as tools to service
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Presented by: The Alabama and Georgia
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Contact amy@alabamaccim.com
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mo r e in fo rm a ti o n abou t
When a property is owned by an LLC,
only the assets of that LLC can be used
to satisfy a claim.