To minimize the risk of a spouse getting a dower interest, a party may want to hold their property in an entity’s name, rather than that of a person. For instance, people in Columbus might put their real estate or their home in an LLC or a trust. And there are other good reasons to put your assets in an LLC other than just the dower interest.
Q: Do you help people set up entities for their real estate?
We often set up entities like LLC’s, especially in commercial real estate transactions. If you own a piece of real estate and you want protection from liability, you don’t want it in your personal name. For example, if someone slips and falls and they sue you personally, suddenly personal assets like your residence are at risk. An LLC protects you from that type of exposure because only the LLC can be sued for the losses or injuries to the extent of its assets.
Q: If my commercial real estate is in an LLC can I be personally sued?
Not unless they “pierce the corporate veil” and get to you.
There are recommended formalities that we advise our clients to follow in the corporate mandates related to the entity being treated as an entity separate from its owners.
Treat it like a commercial enterprise, not like your own personal property, and you will avoid that risk.
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