Having a Trust run an LLC

[Katherine Robbins]

Hi all,

I've heard that it's smart in an asset protection way if you setup a Revocable Living Trust to run your LLC if your LLC is a real estate investing company (i.e we flip houses). I don't know much about this concept and was wondering if there was anyone out there that would have some feedback or advice on the matter. Obviously our LLC offers us personal protection but what would be the benefit of using a Trust when investing in real estate? How would they be structured? Who is the Trustee, Trustor or Beneficiary in this situation? Any information would be helpful! Just want to learn a little more about this stuff.

Thanks!!  

[Drew Fein]

@Andy D. and @Bryan O., interesting discussion. With regard to scenario 2) above, the DOS would be triggered by the transfer from the trust to the LLC, even if the trust has 100% membership interest in the LLC, just as it would be triggered if I transferred my mortgaged property in my own name to my own LLC in which I own 100% of the membership interests. Darn DOS clause.

*NOT LEGAL ADVICE*