Separating assets from liabilities, and cross-charging between related entities often seems to surprise those who don't own and run businesses. But it's basic business 101 which is pretty common everywhere.

Think of it this way. You build a business over 40 years, accumulating value along the way. You would be crazy to leave all that accumulated value in a high-risk entity (which a business naturally is.) So periodically the value is separated from the risk.

So, for example, a business owning the building is nuts. The building is a different asset class, and should be in its own structure. Any reasonable new owner who acquires a business and building in one bite will move to separate them.

This is not scammy or fraud, its the ways things are done and should be done by the original owner.