My father-in-law of 65 years old has a home in California that has NO mortgage (paid off).  He now lives in Colorado with my wife and I and we want to rent out the California home.  He is also a veteran and we need to move the title out of his name for him to qualify for some VA medical benefits.  I am thinking of structuring this scenario in the following manner:

  1.  Property placed in a Land trust with #1 LLC as Trustee and #2 LLC as beneficiary.  Each LLC will be owned by my wife and I.  I will sign as Trustee, “member managed” for #1 LLC and she will sign as beneficiary “member managed” #2 LLC.

My questions

  1.  What do you think of this structure?
  2.  Do I have to be concerned about “doing business” in another state?  Tax implications?
  3. If I made a personal property trust for my father-in-law which then was assigned beneficiary of the land trust, can I be the trustee for each trust?

Any advice would be greatly appreciated.  What would you do?

Thank you in advance,

Rick Moses

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