blugrniz4u wrote:
Rather than trying to re-invent the wheel, why not create a LLC (Limited Liability Corporation) for the plig family?? Each adult is then protected and provided for; assets and real property to be held by the LLC; the LLC would be able to contract a group health insurance plan as well as a group life insurance plan. It is a win-win for all members of the plig family.
Or, how about a trust?
One legal-eagle I heard at a business conference recommended that a family form a trust, and all the family's assets, including homes, autos, and businesses such as LLCs, be put in the trust. His reasoning was this: anything owned by the trust is not subject to probate when someone dies, and it also protects the family's assets from being lost because of lawsuits. The LLC is subject to probate, unless the deceased member's share is actually owned by the trust instead of the individual. Probate=$taxes$ if the total assets are valued over some certain amount. The trust's bylaws would determine who gets what and who does what, both while everyone is still living and after someone dies, no judge involved unless there is a dispute - and then, contract law, not probate law, would apply. Everything is owned by the trust, and the trust doesn't die. It can, however, have a specified amount of time that it will exist, after which it can be renewed or the assets distributed according to the trust's bylaws. Its membership changes as people die or become part of the family, and how that happens, who can become members, and who makes decisions are all specified in the bylaws.
This lawyer was talking to mono families and unmarried individuals who were starting businesses, but in a plig family, each adult would be a member of the trust. A trust could also be formed by two or more families and/or individuals. Each member of a family could form his/her own trust, as well, and one individual's or group's trust can be a member of another trust. It could get rather complicated, but so can interconnected LLCs and other business entities. If the ownership/membership trail gets too hard to follow, someone might think you are trying to hide something...
One of the main differences between a trust and a LLC is that each member of the LLC is an owner, so when he croaks, his share of ownership is one of his assets that goes through probate. In a trust, each member is simply a member and no individual owns anything, so there is nothing to go to probate.
I think (but may be wrong) that a trust can provide group insurance for its members, just as a LLC can do.
What we really need is a lawyer to sort all this out for us...anyone know one who would volunteer?