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:
- 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.
- What do you think of this structure?
- Do I have to be concerned about “doing business” in another state? Tax implications?
- 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,