Why LLC? To limit liability? That's what insurance is for. Perhaps a Joint Venture would have been sufficient, but again, it's not a business.

LLC is a business, and the $75 Annual Report fees for LLCs in NJ prove it. But without any income there really is no need to file 1065 or NJ-1065, other than to get them off your back.

You must have a lawyer in your family to suggest the LLC.