LLC setup and Avoiding The Due on Sales Clause w/ land trust?

[Mike Shemp]

Hi All,

I am looking for any thoughts or guidance on setting up an LLC.

We have a rental property in North Carolina that has a mortgage. We would like to move it into an LLC. We spoke to one asset protection attorney and asked about how to avoid triggering the "due on sales clause" if we moved it. Here is what was suggested:

1. Setup LLC in North Carolina.

2. Setup Wyoming LLC. This is the member/manager of the NC LLC.

3. Change ownership of title to be a land trust via warranty deed. Beneficiary of land trust should be the Wyoming LLC. Changing title to be the land trust should avoid the due on sales clause.

Does anyone have any thoughts on this structure? Does it sound right? Not right? Overkill?

Thanks!

SG