By Phil Rarick, Weston Business Attorney
Here is a Big Red Flag: bundling multiple investment properties in the same LLC. This is a mistake we are seeing more and more often: a real estate investor has six condo rental homes; all rental homes are owned by the same LLC. This investor has essentially defeated the purpose of the LLC. A slip and fall claim on one of the properties would expose all six to the claim.
Bundling multiple investment properties in one LLC
By Phil Rarick, Esq.
Here is a simple fact: most small businesses cannot afford or even survive a major dispute between partners if the dispute ends up in court. Such disputes can doom the small business due to interruption of the company business, distract the principal partners from focusing on growth, and soak up all capital needed to sustain the company.
The following are 5 Take Away Points for avoiding court intervention in your business:
By Phillip B. Rarick, Esq., Weston Asset Protection Attorney
The Checklist Manifesto by Atul Gawande is a current, hot selling book written by a physician and advising how to get things right by implementing commonsense systems.
In today’s modern medicine, coupled with our information age, where virtually every procedure can be scrutinized by an “expert” easily found on Google, it should be standard procedure for every doctor to have a comprehensive asset protection plan – one that is up-to-date to meet the challenges of our fast-changing legal system.
By Phillip B. Rarick, Miami Asset Protection Attorney*
| Action Item | Done |
| Homestead is under ½ acre if in municipality; if not in municipality then under 160 acres Note: Consider leaving mortgage on property – even if not necessary – as excellent asset protection option. The mortgage can be paid down to avoid creditor attack. | |
| Trust systems in place for children and loved ones and integrated withcreditor protection structures | |
| Vacation home is titled in LLC, Limited Partnership, or Tenancy by Entireties | |
| Rental properties are titled in Florida LLC or Limited Partnership. If single, consider Delaware LLC | |
| All Florida LLC’s have (1) Operating Agreement with charging order protection; (2) separate bank account; (3) multi-member | |
| All corporate records have been annually reviewed by corporate attorney | |
| Exposed equity investments protected by asset protection structure Note: Exposed investments are those not protected by Florida law. Protected investments are IRA’s, 401k’s, annuities, pension plans, life insurance, Florida pre-paid tuition plans, and 529 plans. | |
| If married, checking/savings account owned as Tenancy By Entireties (TBE) Note: Confirm by going to bank and checking the bank signature card. | |
| Auto and motor vehicles : If married, title in name of person who drives vehicle the most; not in joint name | |
| Boats or jet skies: Title in name of LLC | |
| Adequate property and casualty insurance | |
| Adequate auto, vehicle, and boat insurance | |
| Umbrella liability insurance Note: Confirm with agent that there are no gaps | |
| If professional: adequate malpractice insurance and experienced malpractice agent who specializes in such coverage | |
| Team of caring and qualified advisors, including CPA, attorney, investment advisor, and insurance agent |
For more information, contact Phil Rarick, a Miami asset protection attorney, at (305) 556-5209 or info@raricklaw.com.
* With special thanks for ideas from Alan Gassman, Esq., estate & asset protection planning attorney and guru.
Special Note
The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami asset protection attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.
By Phillip B. Rarick, Miami Asset Protection Attorney
Florida’s new LLC statute that became effective this past January 1, 2015 made fundamental changes in the state’s limited liability company laws. These changes are so basic that we recommend that you should have a Miami asset protection attorney review all LLC’s created prior to 2015. A key provision of the new law states that an LLC will be Member Managed unless the Operating Agreement or Articles of Organization expressly provide otherwise. F.S. § 605.0407(1). The new law drives home four Take-Away Points:
A big focus of our practice is helping our clients better protect their real estate investments. However, some of our clients are surprised to learn that our legal services extend beyond real estate asset protection. Here is a short list of our real estate services:
– Purchase or Sale of Residential or Commercial real estate. We will represent you on your sale or purchase. It is often difficult to find reliable, cost efficient title companies. We work in close collaboration with local, experienced attorneys who provide excellent title services. We can help you close virtually any real estate transaction at a cost often below other title companies.
– Commercial Leases. A good commercial lease is essential to protecting the value of your property by insuring that good tenants stay, and bad tenants can be quickly and economically removed. A strong, modern lease can help insure that you keep all your properties fully rented and tenants current in their payments. My partner Jay Beskin is experienced with commercial leases and is available to help make sure that your new lease protects your interests. An old lease may not be doing a good job of protecting you in 2015. If you have an old lease, Jay is available to review it.
First, let’s hope you don’t need this. But, if you do, here is a checklist of key estate planning items that should be considered prior to filing a petition for dissolution of marriage:
Note: This is a partial list of key items. Invariably there are other considerations. Consult your estate planning attorney.
1. Revise living revocable trust or will:
Introduction
Florida same-sex partners and same gender couples who were legally married in a state outside of Florida and have now moved to Florida should consider using a TBE (Tenants by Entireties) Delaware LLC to own Florida real estate or intangible property. Here is why.
Strategy
By Phillip B. Rarick, Miami Wealth Protection Attorney*
ASSET PROTECTION CHECKLIST FOR THE FLORIDA SMALL BUSINESS OWNER
By Phillip B. Rarick, Esq., Miami Trust Attorney
A. Domicile vs. Residence
“Domicile” and Residence are two different legal terms, but often confused. A person can have only one domicile, but any number of residences in different states. Domicile is your actual residence in the state joined with your intention to make that state your permanent home. In order to establish a new domicile, you must first abandon your old “domicile”, but not necessarily your old “residence.” The Florida test is both a subjective and objective test. The following checklist is a list of important objective criteria.
Florida Trust & Probate Attorneys Blog
