LLC To Landtrust
If I purchased several investment properties under and LLC and then someone suggested i put them under a Landtrust instead what would be the benefit?
If I purchased several investment properties under and LLC and then someone suggested i put them under a Landtrust instead what would be the benefit?
Each land trust is individual.....if they are all under the same LLC one suit will affect all of them[ Edited by Eric5 on Date 07/08/2005 ]
I think another proponent of trusts are that they do not invoke the Due on Sale clause where quit claiming the deed to an LLC can.
Trusts will also add another layer of anonymity if/when an attorney is looking for your assets to determine if you are worth sueing. But that part is tricky. If you purchase a property and a month later quit claim it to a trust, simply connecting the dots will lead to you. But if you take the property sub2, your name will not be on it and hence, undetectable (or at least harder to detect).
Related question I have is, if I have a single trust for each property, and all the trusts under the management of my LLC, am I leaving myself exposed for lawsuits affecting all the properties? They would belong to separate entities, but managed the one most likely to be sued.
If you have a single trust for each property, and all the trusts are under the management of your LLC, you are leaving yourself exposed for lawsuits affecting all the properties, if the LLC is also the trustee and or beneficiary of each single trust.
Quote:
On 2005-07-14 10:18, mbbransc wrote:
I think another proponent of trusts are that they do not invoke the Due on Sale clause where quit claiming the deed to an LLC can.
Trusts will also add another layer of anonymity if/when an attorney is looking for your assets to determine if you are worth sueing. But that part is tricky. If you purchase a property and a month later quit claim it to a trust, simply connecting the dots will lead to you. But if you take the property sub2, your name will not be on it and hence, undetectable (or at least harder to detect).
Related question I have is, if I have a single trust for each property, and all the trusts under the management of my LLC, am I leaving myself exposed for lawsuits affecting all the properties? They would belong to separate entities, but managed the one most likely to be sued.
[ Edited by Darryle-CA on Date 07/14/2005 ]