[WSBAPT] Assignment of LLC to Revocable Living Trust

[MK Henderson]

Does this work the same way for a c-corp? I have researched this briefly
and that is my understanding.  The RLT would be used for probate avoidance
by holding the C-Corp but the C-corp operates as its own business entity
during single member owners lifetime?

On Tue, Mar 21, 2017 at 3:52 PM, Teunis J. Wyers <teunisj at wyerslawpc.com>
wrote:

> This all makes sense, except the part about a RLT being an entity with its
> own life.  A RLT is not an entity. It is not subject to Secretary of State
> business registration rules.  A RLT agreement provides that the trustee(s)
> will hold, and own, specified assets in trust for specified purposes.  It
> is not proper or legally adequate to convey property to a trust; you convey
> to the trustee(s).
>
> On Tue, Mar 21, 2017 at 11:23 AM, Mike Winslow <mike at winslegal.com> wrote:
>
>> You might benefit from diagraming this out, with some boxes or
>> compartments to better illustrate what is happening. Keep in mind you have
>> two separate entities, each with specific assets. Revocable Living Trust
>> (RLT) and the LLC.
>>
>> Here is how it looks:
>>
>>
>>
>> The RLT is your probate avoidance device. The RLT is an “entity”, with
>> its own life.
>>
>> The RLT owns the *units *in the Property LLC, not the property itself.
>>
>> The units in the LLC belong to the RLT by virtue of the transfer of the
>> units under the assignment you describe.
>>
>>
>>
>> The LLC is an entity separate from the RLT.
>>
>> The LLC owns the property by virtue of the QCD to the LLC. That deed
>> lists the record owner as the LLC, not the RLT.
>>
>>
>>
>> At death of the Trustors under the RLT, the successor trustee may
>> transfer the units in the LLC to the residuary beneficiaries of the RLT. No
>> probate required to accomplish that act.
>>
>> Once the residuary beneficiaries own the units in the LLC, they control
>> the LLC and may do as the please (subject to applicable tax laws) with the
>> property. The new unit owners may transfer the property out of the LLC by
>> deed from the LLC to the beneficiaries, although they may be benefit to
>> leaving the property in the LLC if they intend to continue to own and
>> manage the property.
>>
>>
>>
>> Michael A. Winslow
>>
>> 1204 Cleveland Ave.
>>
>> Mount Vernon, WA 98273
>>
>> Ph. 360-336-3321 <(360)%20336-3321>
>>
>> Em. Mike at winslegal.com
>>
>>
>>
>> This message is from an attorney, so it’s confidential. If you are not
>> the intended recipient, it’s too late to stop reading this message, but you
>> may not use it for any improper purpose. Huge Disclaimer available upon
>> request.
>>
>>
>>
>> *From:* wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.w
>> sbarppt.com] *On Behalf Of *Margaret Delp
>> *Sent:* Monday, March 20, 2017 3:23 PM
>> *To:* WSBAPT at lists.wsbarppt.com
>> *Subject:* [WSBAPT] Assignment of LLC to Revocable Living Trust
>>
>>
>>
>> Husband and Wife  have  transferred their real property via quit claim
>> deed to an LLC.  Husband and Wife are the only owners of LLC.  Husband and
>> Wife have also signed a Revocable Living Trust.  They have also signed an
>> “LLC Membership Assignment” assigning their interest in the LLC to the
>> Trustee of the Revocable Living Trust.  (Multiply above by 4 properties,
>> and four different LLCs).
>>
>>
>>
>> QUESTION:  Upon death of the surviving spouse, can the successor trustee
>> of the Revocable Living Trust simply execute a deed transferring title to
>> the LLC’s real property to the beneficiaries identified in the distribution
>> provisions in the Revocable Living Trust without opening a probate?  Would
>> they need to record the LLC Membership Assignment and a Certification of
>> Trust with the County  along with the deeds at the time of distribution of
>> the properties?
>>
>>
>>
>> Thanks much,
>> Margaret
>>
>>
>>
>>
>>
>>
>>
>> --
>>
>> Law Office of Margaret Delp
>>
>> Mailing address:
>>
>> PO Box 292
>>
>> Langley, WA 98260
>>
>> Physical Address:
>>
>> 2815 Howard Road, Second Floor
>>
>> Langley, WA 98260
>>
>> Telephone: 360-579-4530 <(360)%20579-4530>
>>
>>
>>
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>
>
>
> --
> Teunis J. Wyers @ Wyers|Wyers, Attorneys
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-- 
Mary K. Henderson
Henderson Law Office PLLC
1123 Maple Ave SW, Suite 225
Renton, WA 98057
206-650-2472
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