Florida Trust & Probate Attorneys Blog
A big focus of our practice is helping our clients better protect their real estate investments. However, some of our clients are surprised to learn that our legal services extend beyond real estate asset protection. Here is a short list of our real estate services:
– Purchase or Sale of Residential or Commercial real estate. We will represent you on your sale or purchase. It is often difficult to find reliable, cost efficient title companies. We work in close collaboration with local, experienced attorneys who provide excellent title services. We can help you close virtually any real estate transaction at a cost often below other title companies.
– Commercial Leases. A good commercial lease is essential to protecting the value of your property by insuring that good tenants stay, and bad tenants can be quickly and economically removed. A strong, modern lease can help insure that you keep all your properties fully rented and tenants current in their payments. My partner Jay Beskin is experienced with commercial leases and is available to help make sure that your new lease protects your interests. An old lease may not be doing a good job of protecting you in 2015. If you have an old lease, Jay is available to review it.
3 Important Tips
- Do Not Title Real Estate In An S Corporation
As my colleague, attorney Alan Gassman, says, “Don’t put real estate into darned S Corporations.” S corporations may have been the best choice 15 years ago, but today the entity of choice is a Florida or Delaware LLC (limited liability company), and in some cases the LLLP (limited liability limited partnership).
There are multiple reasons for this. First, the LLC is a higher quality of asset protection. Second, an LLC is easier to administer. Third, the LLC offers more flexibility for tax planning than an S corporation. For example, S corporations can only be owned by individuals and certain types of trusts. They cannot be owned by non-residents, corporations, or family limited partnerships. On death, the tax basis inside an S corporation does not change, but with an LLC it can increase to the fair market value of the ownership interest on date of death – potentially saving significant capital gain taxes for the surviving spouse or children.
- Consider Conversion To LLC If You Have Real Estate In An S Corporation
If you have some properties in S corporations, there is a clear remedy: convert the corporation to an LLC.
- Get It Right – At The Time Of Purchase
I recently purchased a new car for my wife. The car dealership, without asking me, began to prepare all the paperwork to title the car in my name. When I told them they had to redo the paperwork to put it in my wife’s name I heard a few moans, but they did as requested.
Title to your car should only be in one person’s name and it should be in the name of the person who drives the car the most. Otherwise, a good personal injury attorney would have two persons to sue: the driver and the owner. For real estate, it is equally important to make sure the property is titled to maximize protection.
The point here is get it right at the beginning – before you put any name on a real estate contract. Therefore, before you purchase real estate – before you sign anything – give us a call. We do not charge for short telephone conversations with our clients. We will help you determine the best way to hold title and if needed, assist with the sale or purchase.
For more information, contact Phil Rarick or Jay Beskin at (305) 556-5209 or info@raricklaw.com.
Special Note
The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami trust attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.