Putting properties under LLC or Trustee?

[Helen Zhang]

I am considering to create a few LLCs and transfer titles to those LLCs. But before I do this, I noticed many property owners were putting properties into Trustees.

I wonder if theres any information that I am missing out on. Why do these people putting properties into Trustee and not LLC. What are the advantages for putting into trustee other than it is easy to pass it down to someone else? Is there any tax advantages?

[Sean Morrison]

Disclaimer: I am an attorney, but I am not your attorney. This is not legal advice, just friendly information.

People put properties into land trusts with the hope that they will remain anonymous or that they will trick their lenders into transferring the property to an LLC without triggering a due on sales clause. Neither works very well. Trusts are great for transferring properties, but not for managing them. There is no asset protection unless you give up control of the trust, and nobody does that for their properties.