'For Rent:' A question from rental property owners about whether they need an LLC?
Recently my husband & I were told by our lawyer that the rental property we own should be under an LLC. We have owned this property for almost ten years and it has been in the names of our two children and ourselves, four people total, for the entire time. We want to make sure this property goes directly to the kids at our passing. The building, our property is a condo, carries insurance, we carry insurance on the condo itself. A few years ago I refinanced our house and paid off the mortgage loan on the condo. The re-fi consolidated two loans and lowered my interest rate considerably. I also make extra payments on the principal as often as possible. I understood why we would not just put the property into their names right now - a big ouch on taxes due for them - but we were confused about the need for an LLC. Thank you so much.