Own land with 5 partners and will build and share property equally; is LLC better for legal issues in future?
Question Details:Six people co-own 30 acres outside of Hot Springs, Arkansas that we plan to build on. We have joint tenancy right now. Should we do LLC? What is best in the event of a lawsuit against one partner? We have assigned 3 acres per couple for building and "ownership" if one couple decides to sell their share of the land.The remainder of the land is to be used in common for garden and open space. This is written as an agreement, but not a legal document yet.
If you keep the ownership in joint tenancy, if one couple dies, their interest would go to the other couples, not their own family. In an LLC, the "business" owns the property, and each couple has their ownership interest in the LLC which is personal property, not real estate, and would go into their estate at death. Death would force the LLC to be dissolved, and either a new entity would have to be created or the property would have to be sold or divided up.
Nobody is going to be able to work out what the best solution is to this, without sitting down with the 6 of you and getting into more detail about other assets and potential liabilities, among other things.
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