What it is:

A LLC (limited liability company) is an entity in which you may place your real estate or family business in order to provide greater liability protection and greater flexibility in how the asset is owned, sold or transferred.

The problems a LLC can avoid or minimize:

• being personally liable to your tenants for a slip and fall or other accident or misfortune that takes place on your property or business
• holding a high value asset in your own name
• administrative burdens of managing a business or property held jointly by several different people
• potential forced sale of your property/business to pay for long term care costs
• potential forced sale of your property/business to satisfy the creditors of your estate in the event of your death
• Overtaxation of your property or business

How a LLC protects you:

These vehicles provide several benefits including liability protection, greater flexibility in transferring property to others, and asset protection. An LLC offers a reduction in the taxable value of the estate through valuation discounts.