[WSBAPT] Ownership of home In LLC?

[John J. Sullivan]

One issue I don't think has been touched on in this thread is the due on sale clause if the house is mortgaged. 

The Garn-St. Germaine federal exemption for transfers of primary residences to revocable trusts does not cover transfers to LLCs. 

John Sullivan

Sent from my iPhone

> On Dec 7, 2016, at 3:25 PM, Josh Grant <jgrant at accima.com> wrote:
> 
> I have a client who has a large business, fully insured, however the activity has a potential for substantial liability (environmental, accidents to workers).  It is owned as a sole proprietor by client with his wife.
>  
> He and his wife owns some real property including a family home.
>  
> It would be difficult to transfer everything in the business into an LLC. because of the nature of the assets.  Same with transferring everything into a Corporation.  Also he may sell the business in a year or so.
>  
> He is hoping for some reduction in risk exposure to his  nonbusiness assets.
>  
> I have told him that their isn’t  a lot of protection available, however, an LLC might be helpful (create a small barrier) for a business related claim, if for some reason he doesn’t have enough insurance.
>  
> Is there a problem if he puts the real property he and she owns in an LLC?  Would it provide any protection to their assets? Other suggestions?
>  
> Josh Grant
>  
> Joshua F. Grant, PS
> Attorney at Law
> P. O. Box 619
> Wilbur, WA 99185
> tel 509 647 5578
> fax 509 647 2734
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