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My name is***** have over 16 years experience in the law. Should you like to chat on the phone I am happy to for a nominal cost. Let me know at any time during our question and answer session if you are interested I am happy to give you more details.Can this be done? Sure...that is, there is no law or rule that would prevent you from doing this. However, there may be a better way to accomplish your goal here (of allowing you to protect the AZ property)
A potential problem with the LLC is taxes. If you give your children shares in the LLC, the federal gift tax would apply. The current gift tax exemption is $14K...so you could effectively give each of your kids up to $28K ($14K from each of you) tax free. Any gift over $28K would be taxable to you and your wife.The other potential problem is that when you give shares of the LLC to your kids, they become owners with equal rights as you (the ones who formed the LLC). This could create problems if any of the kids decide they want to "cash in" or "sell" their shares of the LLCConsider forming a trust...if you create a trust, you can place the children as beneficiaries of the trust and avoid any gift tax. This would protect the property for your kids, allow you use, and eliminate any gift tax worries.Also, by creating a trust, you control terms of the trust, including how the beneficiaries of the trust can access/use their benefits under the trust. This allows you full control (as opposed to if you create an LLC and convey shares, you run the risk of the kids conveying their ownership interest to others.Please let me know if you have more questions. I am happy to help if I can. Otherwise, please rate the answer so I may get credit for my work.
Yes..that is the beauty of a trust...it can shield assets from taxes AND creditors. And it is more effective at both than an LLC would be.You will need to have an attorney create the trust, ideally an attorney licensed in AZ (since the property is there). $1.5k-$2K will cover the cost of creating and funding the trust.Please let me know if you have more questions. I am happy to help if I can. Otherwise, please rate the answer so I may get credit for my work.