Limited Liability Companies as Trust Substitutes, Part 2
Probate and Property, January/February 2004, Volume 18, Number 4
By David Tyler Lewis and Christopher J.C. Jones
David Tyler Lewis is a member and Christopher J.C. Jones is an associate in the Charlotte, North Carolina office of Moore & Van Allen PLLC. This article was a project of the C-3 Estate Planning and Estate Administration for Farmers and Ranchers Committee.
In Part 1, which appeared in the November/December 2003 issue, the authors described the rapid growth and popularity of LLCs and compared LLCs to other entities, including trusts, using an income tax, estate tax, and administrative analysis. Part 2 discusses specific advantages of using an LLC in situations in which planners traditionally use trusts. By way of example, the authors compare the traditional life insurance trust to an LLC used as a trust substitute.