An individual owns an LLC. The LLC owns property. The value of the property is essentially the entire value of the company. Is the individual's ownership of the company considered "real property" or "personal property"? Or something else?
Edited for context
I'm named as executor in a will for a close relative who passed away suddenly. The decedent was sole proprietor of two closely held companies. One was a small business ("INC") doing actual work, with customers, suppliers, revenue, phones, and all. The other business ("LLC") owns the commercial building, in which the first business was one tenant, and just collects rents, and maintains the property. The property was heavily mortgaged but self-sustaining.
One doc the probate attorney sent me says I will bind myself ("Bond of legal representative of surety") to discharge faithfully the duties as executor. This bond amount is twice the market value of the property held by the LLC, ignoring mortgage and debt, so it's millions of dollars. Um, yikes?!?
Per Google, the state says the bond must be 200% of the value of personal property, excluding real property.
Obviously, I'll get a real opinion from an attorney whom the estate pays, and who knows the details.
But in the meantime I'm curious -- if you own a company that's little but a shell around real property, is equity in the company itself real property or personal property? Or neither?