Series Family Limited Liability Companies

In his May 2008 issue of Estate Analyst in an article entitled The Series FLLC: Copasetic Estate Planning for the 21st Century?, Robert L. Moshman discusses the effective use of multiple family limited liability companies.

Here is an excerpt from the introduction to his article:

Forms of business are chosen for multiple reasons and keep evolving to meet modern needs. One of the newer forms is the Series LLC that allows many separate assets to remain as separate “cells” of the umbrella LLC for liability purposes, yet remain one single LLC, with a single tax return, for tax  purposes.

A Series LLC could be a very useful vehicle for many estates, providing an estate with an organizing principle that is simple and effective. A family limited liability company using this approach may have many additional advantages.

Let’s review the specifics of the Series LLC, compare it to other forms of business, and consider how this arrangement may be useful in the current uncertain context of estate planning. Let’s also take note of the potential problems of any new technique.