Real Estate Transfer Issues: Entities, Insurance, Taxes, and Lending Considerations for Trusts and LLCs

This session examines the fundamental differences between LLCs and trusts for holding real property, including single-member vs. multi-member structures and revocable vs. irrevocable trusts. Participants will learn about maintaining limited liability protection, entity formation requirements, and key drafting considerations for real estate entities.

Explore the unique advantages trusts offer including privacy, probate avoidance, and sophisticated succession planning, alongside their inherent challenges such as lack of flexibility and lender resistance. This session helps practitioners identify when trusts are appropriate for real property ownership and when alternative structures may better serve client goals.

Take a short break to refresh and connect with fellow attendees. Use this time to reflect on the concepts covered and prepare questions for the remaining sessions.

Walk through the complete transfer process from entity verification through recording, including obtaining preliminary title reports, drafting deeds and excise tax affidavits, and addressing title exceptions. Critical post-transfer requirements such as updating property insurance and maintaining entity formalities will be emphasized.

This session addresses crucial tax implications including basis issues, 1031 exchanges, and primary residence exemptions that require CPA consultation before transferring property. Participants will also learn about due-on-sale clause risks, title and property insurance requirements, and the importance of contribution agreements among co-guarantors.