Asset Protection and Due on Sale Avoidance

[Nick Ferguson]

I know simlar discussion have been had but I have some specific asset protection questions. 

Here is the back story, I have two investment properties (plus my personal residence), one SFR and one duplex. I have a first mortgage on both and a HELOC on the first which was used as a down payment on the second. The first one, I still have a decent amount of equity in despite the HELOC but I could in no way cover either of them with cash if I ever had a loan called due.

As an asset protection, I'd like to put both properties into a holding entity. I have an LLC that I use for rent collection and operating expenses but it doesn't own anything except for some cash.

I know the odds of triggering the due on sale clause are always reportedly low but...  

IF I moved a property into an LLC and the due on sale clause was triggered, could I simply move it back into my name and be fine or once it's triggered is it done with?

I have heard that if you move the property into a trust, it cannot trigger the due on sale clause. Is this true?

Secondarily, the property with the existing HELOC is building equity rapidly and will be fully paid off in about 8 years. Probably in another 2 years or so, I'd like to re-do my HELOC for a higher amount and purchase another property. How hard will that be if I've got the house in an entity?