Q: I have transferred my property to an LLC and i want to make sure my personal assets are protected. see more info.
My name is still located on the loan and mortgage statement as the primary, but the house has been quit claim deeded to my LLC, sole member.
I'm also listed as additionally insured on the rental dwelling insurance. My main reason for transferring was to separate my personal assets from the house to protect myself if something were to happen. So with having the items listed above will my personal assets be at risk if something were to happen at the rental property?
A:
it sounds like you have taken a step towards limiting your liability for the operation of the rental property. There remains the possibility that you could be personally liable for accidents or other events associated with the rental property. This is one reason to have insurance.
Another dimension is asset – protection planning, which means to structure your estate to maximize the exemptions available in the event of a judgment against you. You might consider consulting with an attorney to evaluate this aspect of your planning As well as the conduct of your rental business.
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