[WSBAPT] Assignment of LLC to Revocable Living Trust

[Teunis J. Wyers]

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.
> 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 <(360)%20579-4530>
>
>
>
> _______________________________________________
> WSBAPT mailing list
> WSBAPT at lists.wsbarppt.com
> http://mailman.fsr.com/mailman/listinfo/wsbapt
>



-- 
Teunis J. Wyers @ Wyers|Wyers, Attorneys
Oregon Office:
     216 Columbia St. - P.O. Box 917
     Hood River, OR 97031
     (541)386-2210/610-1520 (fax)
Washington Office:
     218 E. Steuben St. - P. O. Box 421
     Bingen, WA  98605
     (509) 493-2772/493-2406 (fax)
Email:  teunisj at wyerslawpc.com
Web:  www.wyerslawpc.com

NOTICE:  This email (including any attachments) is covered by the
Electronic Communications Privacy Act (EPCA), 18 U.S.C., Sec. 2510 - 2522,
is confidential and privileged.  This email is solely for the personal and
confidential use of the recipient(s) named above.  Receipt by anyone other
than the individual recipient(s) is NOT a waiver of attorney-client
privilege.  Any violation of the ECPA is subject to the penalties stated
therein. If you have received this message in error, please notify me
immediately by reply e-mail and immediately delete the original message.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20170321/dce7c242/attachment.html>