My family owns some property and is split between 4 of us. One of them decided to put the property in an LLC. Why would they?

It sounds to me like the property was placed in trust and the LLC is a way to fill the trust with the assets. Contact a estate planning attorney.

The benefits would include liabilty protection, management structure or decision making structure, possible tax benefits...etc. If there is an outstanding mortgage on the home, the deed of trust most likely has a "due on sale clause" that would allow the bank to accelerate the entire amount owed upon the conveyance of the property. This would clearly be a disadvantage if written consent was not obtaioned prior to the conveyance to the LLC. Generally speaking, it is legal (and beneficial) to convey property to an LLC, however, it must be done properly.

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