By: Dr. Tamara Patzer
October 12, 2026
In brief: Real estate rarely stays simple. A New Orleans tax attorney explains why a family that owns several properties needs one register of deeds, entities, loans and insurance, and how IRS rules on gains, estates and entity classification shape the choices, with his book’s advice on structure as the chassis for a wealth system.
A property is usually described by its address. For a family that owns several, the address is the least informative detail. What matters more is the wrapper: the name on title, the entity that holds it, the lender, the insurer, the manager and the person who will inherit it. Those layers decide who can reach the asset, how its income is taxed and what happens when the owner can no longer act. Todd M. Villarrubia, an estate and tax attorney based in New Orleans, devotes much of Entrepreneurial B.E.A.S.T. Mode™ to this idea. A real estate family can borrow it directly.
Why Does Structure Come Before Strategy?
Because strategy has to sit on something. The book describes the business structure as more than a liability shield: “The business structure goes beyond simple liability protection; it serves as the chassis upon which the entire wealth system is constructed.” A chassis is the frame that carries the engine and the passengers. If it is weak or mismatched, no amount of clever planning on top will run smoothly.
For a property family, the chassis is the set of entities that own the buildings, together with the agreements among the people behind them. Many portfolios grow by accident: one property is bought personally, the next in an LLC, the third with a partner, the fourth through a trust. Each choice was reasonable at the time. Together they may be a patchwork.
What Does the Author Say About Choosing a Structure?
He treats the choice as strategic and not just clerical. In his words, “Choosing the right business structure transcends mere compliance; it’s a strategic imperative for asset protection, tax minimization, and succession control.” Three goals appear in that sentence, and a property family should ask of every holding whether it serves all three.
Protection asks whether a claim against one building could reach the others. Tax asks how income and gains are treated. Succession asks who controls the property if the owner dies or becomes unable to manage. A holding that serves one goal and undermines another is a candidate for a conversation with an attorney.
How Does the IRS See the Entity?
In a way that can differ from how the state sees it. The IRS explains that an eligible entity can file Form 8832 to elect whether it will be classified as a corporation, a partnership or an entity disregarded as separate from its owner. An LLC that owns a rental building has a legal existence under state law and a tax classification under federal law, and the two are separate decisions.
A family with several property entities may find that they were classified at different times, by different preparers, for different reasons. A simple table that lists each entity and its classification often reveals inconsistencies that nobody intended. A tax professional can say which, if any, should change.
What Do the Gain Rules Mean for a Property Family?
They make timing and holding periods central. The IRS says long-term capital gains are taxed at 0, 15 or 20 percent for assets held longer than a year, and it notes that the taxable part of gain from real property that comes from depreciation, called unrecaptured section 1250 gain, can be taxed at up to 25 percent. The mix of rates in a single sale depends on the property, the holding period and the owner’s depreciation history.
The practical point is that a sale of real estate is not a single tax event with a single rate. A family planning to sell, exchange or transfer a property should model the outcome with a tax professional before signing. Waiting until a contract is in hand narrows the options.
What Does the Estate Side Add?
A valuation question. Real estate is usually the largest and least liquid part of a property family’s estate, and estate rules look at value and not at spendable cash. The IRS lists $15,000,000 per person as the federal basic exclusion amount for people who die in 2026. Families well below that figure may still face state rules and family questions about who gets which building.
Even without a tax bill, the estate raises practical issues. Who manages the properties while the estate is settled? Who can sign leases and pay the mortgage? Do the lenders require consent for a transfer? A family that has written the answers down is far ahead of one that discovers the questions during a funeral.
How Should a Family Build One Register?
One row per property, with these columns: address, name on title, holding entity, lender and loan terms, insurer and limits, manager, tenants or use, and intended heir or plan. Add a second sheet listing each entity, its owners and its tax classification. Keep both in a place that a trusted person can reach, and update them at least once a year.
The author’s view of layered protection applies here: “Asset protection is not a one-time purchase; it is an architectural discipline.” A register is how the discipline shows up in daily life. It does not protect anything on its own, but it makes it possible to see whether protections still exist.
Where Does a Family Office Fit?
At the point where the register becomes too large for the owner to maintain alone. Some families add a controller or a part-time coordinator. Others engage an attorney or an accountant to serve as the lead adviser. A larger family might build an office with its own staff. The author recognizes that this is not necessary for everyone, and a family with a handful of properties may do well with a register and an annual meeting.
What matters is that someone is responsible, and that the advisers who touch the portfolio have the same facts. A lawyer who has not seen the loan documents and a lender who has not seen the estate plan will each make decisions that the other will regret.
What Goes Wrong Most Often?
Four patterns recur. Properties are bought in the wrong name and never moved. Entities are formed and then ignored, so that annual filings lapse. Insurance fails to keep pace with property values. And heirs are promised buildings without being told about the debt attached to them. All four are easy to find with a register and easy to fix when found early.
What Should a Property Family Do This Quarter?
Build the register, even in rough form. Compare it with what the attorney, the accountant and the insurer each have on file. Note every mismatch. Ask the attorney which holdings best fit the family’s goals for protection, tax and succession, and which deserve a second look. Then set a date for the next update.
Common Questions
Should every property be in its own LLC? Not necessarily. The right arrangement depends on the property, the lender, the state and the family’s goals, and an attorney can advise.
Does an entity change my taxes? It can, through its tax classification and how income flows to owners. A tax professional can model the effect.
Can I move a property into an entity later? Often, though lenders, title insurers and tax rules may be involved. Seek legal advice before transferring.
Sources
Internal Revenue Service, Topic no. 409, Capital Gains and Losses
Internal Revenue Service, What’s New: Estate and Gift Tax
Internal Revenue Service, About Form 8832, Entity Classification Election
About the author. Dr. Tamara Patzer is a publisher and former newspaper editor. She was on the staff of The Charlotte Sun when it was named a 2005 Pulitzer Prize finalist for its Hurricane Charley coverage.
About the source. Todd M. Villarrubia is an attorney with an LL.M. in Taxation and a Juris Doctorate. He is an Accredited Estate Planner, a Board Certified Expert in Estate Planning and Administration, and a Fiduciary Investment Advisor Representative. He is the author of Entrepreneurial B.E.A.S.T. Mode™. Wealth Planning Law Group, 101 W. Robert E. Lee Blvd., Ste 404, New Orleans, LA 70124. Phone: 504-982-8207; email: todd@lawealthplan.com; website: lawealthplan.com.
Disclaimer: Attorney advertising. Sponsored feature written on behalf of Todd M. Villarrubia. This article is general information, not legal or tax advice, and reading it does not create an attorney-client relationship. Results vary.
