How can I safeguard my interest in a real estate asset?

One effective method to safeguard your interest in a real estate asset is to transfer it to an entity, such as a limited liability company (LLC). By doing so, you are separating any potential liabilities associated with the property from your other assets. Furthermore, if you have a personal creditor, this transfer also helps protect the property from their claims through the implementation of what is known as a charging order. A charging order restricts the creditor’s rights only to potential distributions from the LLC, if and when they are made. The creditor does not possess any voting or managerial rights, nor can they dissolve the LLC and seize its assets. They can solely obtain a distribution if one is made, and the timing of such distributions is determined by the client, who remains the manager of the LLC.