Newbie 1st Investment Property -Title with Trust, which option?

[Deanna S.]

Hello, Bigger Pockets. If you could help this REI newbie, we would appreciate it. We are closing on our first investment property, a triplex in Cuyahoga County, Ohio. We do not know which is best for the title and if there is a tax difference and one provides better asset protection. Here are the options we are deciding between. Our closing date is in 13 days so we have to make this decision quickly. We do not have an LLC as of today. We can do that if that protects us. Our home is in our Revocable Family Trust. Right now, we do not have any other real estate in our Family Trust.

1) This is the option we are planning to do right now and this is what the title company is preparing. The property would also be insured under the trust.

Per our attorney, we would title the property as follows:

The X Family Revocable Trust dated (  ), and [husband's name] and [my name] , Trustees under the X Family Revocable Trust dated (  ), either of whom may act.

This would be a general warranty deed, as the survivorship is outlined in the trust.

2) This is the other option we can do.

We would have to have a RTODD prepared and filed. After the settlement, and the Deed for the purchase is recorded, then you would have the RTODD (revocable transfer on death deed) prepared, and it would be from you us (my husband and I) as individuals, and the named beneficiary would then be your Trust. 

Thank you so much!  I am so appreciative!