How can I protect my interest in real property?
Video Transcript
One great technique to protect your interest in real property is to transfer it to a limited liability company. By doing that, you’re insulating any liabilities on a property from your other assets. In addition, if you have a personal creditor you’re also protecting the property from claims of any personal creditors by limiting the creditor to what’s called a charging order. A charging order only gives a creditor the right to distributions out of the LLC if they are actually made. The creditor will not have any voting rights, no managerial rights, cannot dissolve the LLC and take the assets. They only get a distribution if one is made and if the client stays as the manager of the LLC, the client will determine the timing of the distributions.
