How to Move an LLC Into a Trust

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  • Опубликовано: 29 ноя 2024

Комментарии • 69

  • @shujazaidi2644
    @shujazaidi2644 Год назад +3

    Loved the simplicity of your explanation Lee. Thank you

  • @Greghh1960
    @Greghh1960 2 года назад +1

    If I understand you correctly, if I have multiple LLC's and have a parent LLC be the member ( owner) of the subordinate LLC's, the parent LLC is the one that needs to have the member the revocable trust. None of the subordinates need to change, correct?

  • @ChristopherColdness
    @ChristopherColdness 3 года назад +1

    your videos are a great service to the public regarding these private matters. Can you make a playlist for your trusts videos?

    • @Legaleescorp
      @Legaleescorp  3 года назад

      Already exists. See ruclips.net/p/PL2UfDls0cww274MCugusQY36woWWFZX-k

  • @TheMsparker27
    @TheMsparker27 Год назад +2

    This is an absolutely incredible video!! Thank youuuu!!!

  • @PedroOjeda
    @PedroOjeda Год назад

    What are the tax implication of changing the LLC membership to a trust? Can it be a free "sale" from me to the Trust? Or would we do it as a gift?

    • @Legaleescorp
      @Legaleescorp  Год назад +1

      It depends upon the type of trust. If it is a living revocable trust for your estate planning, it is considered a disregarded entity, aka, you. So there wouldn’t be any tax consequence. If it is an irrevocable trust, then the value of the LLC would be considered a gift to the beneficiaries of the trust.

  • @ruhnet
    @ruhnet Год назад +2

    Thanks for the very well explained video, Lee. Is there a reason why making a trust the member of a single-member LLC as you describe would be better than provisions in the operating agreement specifying that upon the death of the member, John Smith (who is the successor trustee of the trust as well) receives the membership in the LLC? In other words are there legal pitfalls to specifying who takes over the LLC in the operating agreement, vs just using the trust?

    • @Legaleescorp
      @Legaleescorp  Год назад +2

      The trust usually provides for things like the death of the beneficiary and who is next in line. The operating agreement usually doesn’t go into that much detail. But if the guy is still alive and everything when the death occurs, then the transfer in the operating agreement should be ok.

  • @Kson7491
    @Kson7491 7 месяцев назад

    It does not provide asset protection, but does it provide privacy? I would assume if someone were to look up public records on the LLC instead of seeing my name they would see the name of the trust. And revocable trusts are not public information in regards to who owns these trusts?

    • @Legaleescorp
      @Legaleescorp  7 месяцев назад

      It gives you almost no privacy. Most states don’t require the listing of owners. They do require the registered agent. Usually you are the registered agent. When you hold the membership interest in the name of the trust remember that the trusts name had three parts. 1 Name of trust 2. Date of trust 3. Trustee’s name (your name). There is no privacy today, but it kind of removes you from a little view of the public. Don’t forget FinCEN where the feds are collecting all your info. You have to register this year. If you want my article on FinCEN, email me info@legalees.com.

  • @TheContributors
    @TheContributors Год назад

    hey Lee, thanks for the video, very informative. I have a C-Corp, can I make a Living trust a shareholder of my C-Corp? Thanks

    • @Legaleescorp
      @Legaleescorp  Год назад

      No problem making a C Corporation have the trust as owner. The trust has to be written a specific way to let it own a Subchapter S, but no problem with a C Corporation.

  • @QueenofInnerGTarot
    @QueenofInnerGTarot 2 года назад

    I definitely need the book. I have a C corp

    • @Legaleescorp
      @Legaleescorp  2 года назад

      Sign up to get it at legalees.com/personal-planning/

  • @SumaHomes
    @SumaHomes Год назад

    I heard that, if we add LLC/corporation in the revocable trust,, if someone sues the LLC, I heard creditors can take over the trust and they can become beneficiary? what is your thought?

    • @Legaleescorp
      @Legaleescorp  Год назад

      You are the defacto owner of all the stuff in the trust, so the stuff in the trust is at the same risk as if you owned it outright. no mor no less risk

  • @makeller24
    @makeller24 Год назад

    Where are these trust recorded? SOS
    Escrow company can do it if it real estate?

  • @c.tia.n
    @c.tia.n 7 месяцев назад

    Is there a reason you couldn't have a provision in your LLC operating agreement that provides your membership interest passes to XYZ person upon your death? I believe in VA this is acceptable. Maybe in other states it isn't?

    • @Legaleescorp
      @Legaleescorp  7 месяцев назад

      I think you can add the provision saying what happens upon death in any state. I just haven’t put it in. You can certainly include it in your operating agreement.

  • @de3ra
    @de3ra 11 месяцев назад

    so could members of the trust control the LLC or would they need to be written into the LLC Operating Agreement?

    • @Legaleescorp
      @Legaleescorp  11 месяцев назад

      The LLC operating agreement controls the LLC. It says how a manager is named. The trust may be the member, but a person has to be appointed manager of the LLC.

  • @jeffp1377
    @jeffp1377 3 года назад +1

    Love this video. Assuming it’s a valid QSST, have you seen whether the transfer of Sub-S stock from shareholder to TEE shareholder is an event that the irs needs to hear about?

    • @Legaleescorp
      @Legaleescorp  3 года назад +2

      You shouldn’t need to notify the IRS in any situation here. The Tax ID number will be the same.

  • @lifespanglo9370
    @lifespanglo9370 Год назад

    I have an existing LLC , I'm interested in properly converting that to a holding company if possible or creating a new holding company and then putting everything that I have under a Trust. Can you help me with setting these up properly or can you recommend someone that can do both for me?

    • @Legaleescorp
      @Legaleescorp  Год назад

      I don’t take clients. I feel like it is a conflict of interest if I say I will educate you and then line you up to be a client. I can refer an attorney to you, but local attorneys usually work out best.

  • @gaillegregoire4002
    @gaillegregoire4002 2 года назад

    Thank you so much for your video, the only thing I am confused about , is how do you set up a bank account if the living .?

    • @Legaleescorp
      @Legaleescorp  2 года назад

      We have a RUclips on how to move a bank account into a trust at ruclips.net/video/TApmKdGWwtU/видео.html

  • @JF-vs1te
    @JF-vs1te 2 года назад +1

    Thanks for your helpful videos. I have a single member LLC with its own EIN (LLC as pass-through entity). The deed to office real estate, brokerage account and checking account ownership are all in the name of the LLC using that EIN. If I were to create a trust and make it the single member of the LLC, will this action affect my access/use of those bank account signature cards or the deed on the real estate, etc? Would I need to take any further action to inform the bank, for example, that the checking account is now part of a trust (or likewise amend real estate property records with Trust as owner)? Can I continue to use the EIN (rather than my SS#)? And in the Trust docs, I just list the LLC as a whole (because inclusion of all its assets is by default), rather than list out and fund the Trust with each separate asset within the LLC, correct?

    • @Legaleescorp
      @Legaleescorp  2 года назад

      Nothing changes for the LLC when you make the living revocable trust the single member. Unless the state requires a list of the members, nobody ever needs to know. Yours is still the signature as a result of you being the manager of the LLC.

  • @moublemesign9306
    @moublemesign9306 2 года назад +1

    When forming an LLC with a trust as the managing member, I understand we are protected from probate. As far as asset protection, does that protection decline when you have a trust as the managing member?

    • @Legaleescorp
      @Legaleescorp  2 года назад +2

      The trust probably won’t be the manager of the LLC. That should be you as an individual. Your ownership (membership) is held in the trust to avoid probate. The fact that a living revocable trust holds the membership interest won’t have any affect on the asset protection provided by the LLC. The trust is considered “you” for all legal and tax purposes.

  • @leeforex8441
    @leeforex8441 Год назад

    Do you have any videos on how to add an LLC to a foreign trust?

    • @Legaleescorp
      @Legaleescorp  Год назад

      I don’t have anything on that. it would depend on where the foreign trust is located.

    • @leeforex8441
      @leeforex8441 Год назад

      @@Legaleescorp Hmmm, ok. I was thinking it would be as simple as putting the LLC under the "umbrella" of the Foreign Trust by filing a paper or papers. I didn't think it matters what country it's in as long as the 98 number is for the Trust and the trust is ESTABLISHED in ANY country other than in North America.

    • @Legaleescorp
      @Legaleescorp  Год назад

      I don’t deal with foreign trusts, but I am pretty sure the process of having an LLC owned by any trust would be the same. The trust would have to be listed as the member (owner) of the LLC in the state and internal LLC documents. The LLC could not be taxed under Subchapter S if a foreign is an owner of the LLC. That’s IRS law associated with Subchapter S.

  • @SpartanOfFinance
    @SpartanOfFinance 3 года назад +2

    Hi Lee! Another great video. Quick question. Instead of adding my RLT as the Member to my LLC, can I just assign the Beneficial Interest to it, get that notarized and keep those docs together?

    • @Legaleescorp
      @Legaleescorp  3 года назад +1

      I don’t understand. You want to make the LLC the beneficiary of the trust? The trust has to be the member in order to avoid probate of the LLC when you die.

    • @sred5856
      @sred5856 3 года назад +1

      What you say sounds correct (push vs pull) but in reality the trust could say it owns the whole planet. Only the LLC will say who the true owner is as pointed by LegaLees

  • @johannaperez-hierro8626
    @johannaperez-hierro8626 Год назад

    What happens when it’s a disregarded LLC. Does the trust become the only “owner” of the LLC?

    • @Legaleescorp
      @Legaleescorp  Год назад

      A disregarded entity only has one owner always. The trust becomes the sole owner. The “disregarded” term is a tax term. The IRS “disregards” the entity and just considers it a sole proprietorship. You will still use your Social Security number, because the trust is also a disregarded entity.

    • @Paulohlsson7
      @Paulohlsson7 3 месяца назад

      Hi Johanna, how's your day going with you?

  • @forestbaker2905
    @forestbaker2905 Год назад

    I purchased your "complete operating agreement" product and my goal is to create our LLC so it's member-managed with our revocable trust as the member. However, our trust has 2 trustees (my spouse and me). In the example you gave, there was only 1 trustee. Given that we have 2 trustees, I'm confused how this affects the rest of our operating agreement.
    1) When "naming" the trust as our member in our LLC, do we include both of our names at the end (e.g, ....John Doe Trustee and Jane Doe Trustee)? Or do we list two members separately as: "ABC Trust UA 3/3/22 John Doe Trustee" and then "ABC Trust UA 3/3/22 Jane Doe Trustee"?
    2) Does this result in our LLC actually having 2 members or is there still just 1 member (the trust) with 100% interest? For example, who/what do we list in "schedule B" in your operating template?
    3) How does this affect the "member incompetence or death In section" 4.9 of your operating agreement? It seems that we need both trustees recognized as members, separately, for this section to make sense.
    Thanks in advance!
    PS - I'm glad I bought your operating agreement product. It's very good.

    • @Legaleescorp
      @Legaleescorp  Год назад

      There would only be one member, the trust. There would be two signatures as trustee, but they only represent the one member (trust). You have to read 4.9 as the trust is the member, not the trustees. The trust will not die or become incompetent. A trustee might die or become incompetent, but that has nothing to do with the trust being a member. That is an internal matter with the trust. That does not effect the member of the LLC.

    • @forestbaker2905
      @forestbaker2905 Год назад

      @@Legaleescorp Thanks!!! To confirm, do I list our trust as the only member like this: "ABC Trust UA 3/3/22 John Doe and Jane Doe Trustees"?

  • @mjohn1223
    @mjohn1223 Год назад

    Hi Lee, I just discovered your RUclips videos. Thank you for these. I have a question I'd like to ask: I already have a RLT, which was set up years ago. I would like to transfer ownership of my single-member LLC, from myself, as an individual, to my RLT. Actually, I have 2 questions:
    1) I never filled out the initial Membership Certificate ("MC") with my name as the sole Member. But, there is Exhibit A, in the initial LLC startup paperwork, that states my name as the only member, with 100% interest. Should I complete an MC, "back-dated," with my name (as individual) first. Then follow the steps in your video (void the initial MC and fill-out a new one, with my LLC? Or, just fill-out a new MC, now, with my LLC as the member, and note it in the log?
    2) Do I need to have this new MC notarized? Or will it suffice by simply completing & signing a new MC, and, keeping it with my LLC paperwork?
    Thank you.

    • @Legaleescorp
      @Legaleescorp  Год назад +1

      Just start out like the LLC is the member and forget the past. If anyone every questions why you didn’t do it in the first place, just tell them you didn’t know what to do until you saw this idiot lawyer’s RUclipss. You really did want to do it right but didn’t know about membership certificates until the RUclipss. You don’t need it notarized. The LLC Wizard program automatically generates the log book and certificates, if you are one of my students using that. It just looks like a stock certificate.

  • @RisingWellness1111
    @RisingWellness1111 2 года назад

    Hi, Lee i have a question.
    I just open a LLC When is the right time to do this? Those your business had to be making certain amount off money before doing the trust?

    • @Legaleescorp
      @Legaleescorp  2 года назад

      I think you may be mixing up some concepts. Your business can be formed at any time. I do tell folks to make sure they have a viable business before they spend all the money and effort on setting up an LLC for the company. The trust is totally separate from the company. Your living revocable trust should be set up now and then it would be the owner (or at least one of the owners) of the LLC. The trust avoids probate. The LLC gives you asset protection and tax advantages.

  • @susanshopsabout943
    @susanshopsabout943 3 года назад +1

    Lee, thanks for the free ebook offer - I went on your site, could only find one ebook on trust. The price was $7.99. Is this the same ebook u mentioned in this video that u said was $19.99? I’m confused. Also … your checkout page, assuming u only have this one ebook, has no coupon code to receive it for free :/.
    Please help. Thank you!

    • @Legaleescorp
      @Legaleescorp  3 года назад +2

      Per the instructions in the video, please email us at info@legalees.com and we will send it to you for free.

  • @shannontefft-janes1094
    @shannontefft-janes1094 2 года назад

    Thank you for the video!
    Question - Wouldn't it be more difficult for opening a bank account with a Revocable Trust as the member (the bank would want to see the Trust document)? Wouldn't an assignment after everything was set up be easier?

    • @Legaleescorp
      @Legaleescorp  2 года назад +2

      The bank might require the trust document. The question is how will the bank account be taxed. If the LLC is a disregarded entity, it is your SS number probably, so the bank doesn’t need the trust. The trust is a disregarded entity. You need the account to be in the name of the LLC, and just “assigning” it later probably won’t do that.

  • @markelyakelly4627
    @markelyakelly4627 2 года назад

    Hello,
    Could I get a copy of the E-book? Thank you!

    • @Legaleescorp
      @Legaleescorp  2 года назад

      Sign up for it at legalees.com/personal-planning/

  • @rinihaque2946
    @rinihaque2946 2 года назад

    Question I am in texas I have a single member LLC has few rental houses under. This LLC is a disregarded entity by IRS because it’s a single member LLC I have been filing income tax just like regular individual return. My LLC was created only to get asset protection. So if I want transfer those rental houses from LLC to the trust do i just need to create an operating agreement with manager and member are same name (my name) then create an assignment just like you said using in other video using trustor name date when the trust was created and trustee name then sign both documents by notary and keep LLc documents, trust document, operating agreement and assignment of the Llc documents to the trust and put it in safe place and I am done? or after that do I still need to modify the deed from the LLC name to the trust name and record the properties again under the trust through county office? Also will it avoid probate and give the beneficiary the stepped up in basis when the death event happens if total value remain bellow 11.5 million

    • @Legaleescorp
      @Legaleescorp  2 года назад +1

      No you don’t mess with the deeds to the properties held in the LLC. By changing the LLC ownership from you to your trust, you effectively bring the properties into the trust, because the trust owns the LLC. You will keep the taxes the same, because the IRS considers the trust you. So other than the paperwork to change the owner from you to the trust, there isn’t anything else to do. Read your operating agreement to see how you get a new member in and follow that procedure to change from you to the trust. Check with Texas to see if they need to know about a membership change. You will remain the manager.

    • @rinihaque2946
      @rinihaque2946 2 года назад

      @@Legaleescorp Thanks a bunch. I really appreciate your response. so I have created a operating agreement and assignment of the trust notarized it and I understand it doesn’t create a sale event so I will be filings taxes as normal. Do I need to Record this assignment somewhere like to the state to make it formal so when I pass away beneficiary can get the step up basis value of the llc properties and I am hands off and my trustee can manage it fully until I pass according to the trust while I and traveling. Pls answer kindly. Appreciate you a lot

  • @tamarstep
    @tamarstep 2 года назад

    Can an IRT be under an LLC?

  • @philipbenebyii1694
    @philipbenebyii1694 Год назад

    I caught that lol at the beginning

  • @JoshPalerLin
    @JoshPalerLin Год назад

    😂😂😂

  • @tylertriplett7988
    @tylertriplett7988 2 года назад

    I am interested in setting something up for me. Where is your office located at or can we dona video call?

    • @Legaleescorp
      @Legaleescorp  2 года назад +1

      If you are interested in a trust, I can get you to the right people who were trained in my office. I am pretty much retired from the legal work, because I am really really really old. 😊

  • @deassfgh7807
    @deassfgh7807 2 года назад

    I thought LLCs couldnt go into probate and it could have multiple members. I though LLCs were life long it doesn't die. The only way this would happens as If he were a solo proprietor or used his social security card number to run the business. It seems unnecessary

    • @Legaleescorp
      @Legaleescorp  2 года назад +1

      Probate will be called for anytime an asset needs to be transferred (ownership changed from you to your heirs) if your signature is required to make the change. An LLC is certainly an asset that requires your signature to transfer ownership after you die. Therefore, an LLC is an asset that needs to be probated unless the membership is held by a living revocable trust or there are provisions in the operating agreement that state how the LLC can move your interest in the LLC after you die.

  • @kristinmarks3708
    @kristinmarks3708 2 года назад

    Who would I hire to help me with all this? A lawyer?

    • @Legaleescorp
      @Legaleescorp  2 года назад +2

      You should be able to do it all yourself. It is easy. Get my tutorial/LLC kit, LLC Wizard, and it will certainly show you how. Otherwise, a lawyer could certainly do it, but they are billing a lot these days. My nephew is billing $1,500 per hour as a business attorney. (I am old school. That blows my mind.) The LLC Wizard will show you how to do almost everything associated with an LLC. I think it is better to spend the money there rather than on a one time service provided by an attorney. Call the office 801 802 9020 and tell them I said you could get LLC Wizard for half off.

    • @g86jn
      @g86jn 2 года назад

      There isn’t a better ‘RUclips’ neighbor than Mr Lee Phillips