James: For maximum asset protection, should the single-member LLCs holding the land trusts be manager-managed, member-managed, or does it matter?
Clint: It does not matter but if you want to create an anonymity compliant structure then each of the LLCs owned by your Nevada LLC should be member-managed.
Neal: We have a personal residence (titled in the name of our family trust) that we are thinking of selling but this sale might occur before the 2-year IRS exclusion of $250k per person can take effect. There will be a sizeable, taxable profit. We also have an Anderson-managed, Nevada “C” corp that has yet-to-be-recovered, accumulated expenses that exceed the value of the expected profit on the personal residence. Can we deed the title of our personal residence to our “C” corp before the sale and then use the corporation’s accumulated expenses to offset the profit on the house sale? If so, how soon should the transfer be executed prior to the actual sale?
Clint: This would not be a good strategy. If you want to pick up the loss consider closing down your corporation and claiming 1244 stock loss treatment. I assume we set up your corporation so this election was made upon incorporation.
Pablo: Texas parents want to transfer properties to minors and retain a life estate – can this be set up?
Clint: Yes, but it will be set up through a Qualified Personal Residence Trust. For more information on a Qualified Personal Residence Trust visit our website here.
Connie: Can you refinance property already in a trust in Florida?
Clint: No problem if your bank agrees to the refinance.
Jim: A local attorney here in PA told me that the beneficiary must be disclosed to the county.
Clint: Correct on the initial transfer. The county requests a copy of the trust to ensure it is not a taxable transfer. As I indicated on the webinar, I have a workaround if you would like to use a land trust.
Clint Coons is a licensed attorney, active real estate investor, successful entrepreneur, and published author who specializes in asset protection and business planning. Clint shares his knowledge and strategies at seminars nationwide with real estate investors, stock traders, and small business owners. He is nationally recognized for his ability to take complicated laws or structures and explain them in crystal clear form. He helps his client’s protect their investments through his innovative and dynamic approach to asset management.