Written by: Evelyn C. Garcia
Edit by: Akemis Ortiz
Many of you have asked if you should and could transfer your home to an LLC. My response would always be that it depends on what you are trying to accomplish. I would raise questions like: Is your house a multi-family home? If your response is "yes," then I would say, "yes, go for it."
If your primary residence is also your current business, then you can lose your business and home at the same time. Why would you want to do that? Also, most banks won’t allow it, and you need to be careful because the bank can ask for the loan due in full before the transfer. The transfer tax and fees you will pay don’t make sense.
My advice is that if you are looking to protect your home, then what you should do is transfer it to a trust and have a beneficiary. If you move your property from a person to a trust and that person remains the beneficiary in the trust, no transfer tax is due by law.
As with any investment decisions, choosing to transfer the title on a property from your name to an LLC can have some unintended consequences. That’s why it’s best to enlist help from your attorney, financial advisor, and preferred title company before making any big moves.