Legal Question in Business Law in Michigan

Using LLC to help elderly parents
My Parents are asset rich but cash poor. It was suggested that we form a LLC and buy 1/2 of their duplex to provide income to them and a tax break for us (Taxes, interest). They have a home equity loan with 15,000 outstanding debt. There is of course a lein on the house related to the debt. If we form a LLC and they cannot pay the debt, would we as partners of the LLC be responsible for it? Or could the debt be fulfilled when property is sold and the LLC dissolved? I believe they would be better off with a reverse mortgage but they don't want to eat up all of their children's inheritance. What do you think?

Asked on 4/06/03, 5:45 pm

Don Darnell Darnell & Lulgjuraj, P.C.

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Re: Using LLC to help elderly parents

You have some interesting ideas, but not sure how any of them would help your parents.

Answered on 4/07/03, 1:23 pm

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