Questions around Trust, LLC, sole proprietorship, umbrella insurance

[Ana Vhan]

This is our situation. Let me know what is the right path for us - Trust and sole proprietorship OR trust and LLC OR something else?

We have rental homes in CA and in AZ. 

We plan to add all of those under our trust. Right now, for the liability coverage, we have an umbrella insurance in place. 

But we are wondering if we are better covered if we register an LLC and manage all the rentals under the LLC.

If we go the LLC route,

where do we register the LLC?

Can we have the homes under trust managed by the LLC?

With LLC in place, would we still need an umbrella insurance? I am guessing probably not but want to confirm.

With LLC we pay the $800 CA franchise fee every year, correct? We won't have to pay that with sole proprietorship.

Which route is better for us?

Thanks in advance. Always appreciate this community and the support I receive here.