[WSBAPT] Assignment of LLC to Revocable Living Trust

[Mike Winslow]

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
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.wsbarppt.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
 
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