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Irwin Law
Irwin Law, Attorney
Category: Estate Law
Satisfied Customers: 7599
Experience:  30+ yrs. handling probate estate, wills, trust, inheritance & real estate related matters
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I live in florida and I would like to take my llc properties

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Hi I live in florida and I would like to take my llc properties with real estate assets in them and pass them on to my two children , 16 and 17 years old. I need advise , do I just put their names on sunbiz as the new members and draw up an operating agreement, or do I set up a trust.
if I set up a trust for kids, who owes the LLC, I want to get the ownership out of my name and into their name.
thankyou

Thank you for using JA. I am Loren, a licensed attorney for over 30 yrs., and I am here to help.

I am a certified expert on JustAnswer since 2009, with nearly 100% in satisfied customer ratings. So, we should be able to work through your problem.

I appreciate your patience as I review your question. I will post my response shortly.

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You just need to transfer the membership interest to them. It need not be reported to change the members.

However, to avoid complications, you may want to to retain yourself as the manager until they reach legal age of majority. They can not legally enter into any contracts.

Customer: replied 7 months ago.
is there any benefit to having it in a trust and if not, do I need to fill out a gift tax return as I do not want to get in trouble with taxes.
also, what happens with the K1 for the llc with the real estate property /
one llc has no income as it is just a condo and the other llc is a rental property.
I just want to structure it correctly
would I need an operating agreement
thankyou

Yes, the LLCs would need to report their income or loss and issue K1s to the members.

Yes, you will need to report the transfer as a gift and file a gift tax return

A trust may be helpful so that you can retain control of the properties.

Customer: replied 7 months ago.
if I do the trust , who would own the llc and who would get the k1
for example abc llc with one real estate investment is now owned by AB trust for my grandchildren. im confused as to who owns the llc and who would get the KI
can a trust be listed as a member on sunbiz or does it need to be an individual.
how do you pass an llc to a trust?

This is getting a bit more complicated than the original question and I need to sign off shortly. So, I will opt out for another expert to assist you.

Good afternoon. I will try to take up where Loren left off. First, I strongly recommend that you do not use an LLC to hold title to the properties,especially with two members being minors. Use a trust, with yourself as trustee for the benefit of the children. The trust can pay the income tax, or distribute the income to the beneficiaries and have them file returns. I hope that this has been helpful information and that you will enter a positive rating for it.
Customer: replied 7 months ago.
is there a negative to keeping them in LLC? And if I decide to do a trust can it be revokable or irrevocable?
Somehow I would like to keep it where it is owned by my children or the trust but I still collect the income until I pass away
You should check with the local attorney, but I don't believe you can set up an LLC to own the properties with minor children as members. The minors cannot consent to an operating agreement which you will need in order to manage the properties. The trust is better.
Irwin Law, Attorney
Category: Estate Law
Satisfied Customers: 7599
Experience: 30+ yrs. handling probate estate, wills, trust, inheritance & real estate related matters
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