Does this structure with Trust and LLCs look right?

[Monica Crisostomo]

Hello,

I would like to have some feedback about the structure we are putting our rental properties into.  We are thinking:

a) 1 Trust for each rental

b) Trust's Trustee: Disregarded LLC

c) Trust's Beneficiary: Regular LLC that manages the Disregarded LLC (Trustee)

d) We (my husband and I) manage the Regular LLC (Beneficiary)

e) Each new rental will have its own Trust, but all the Trusts will have the same Disregarded LLC as the Trustee, and the same Regular LLC as the Beneficiary.

f) To add more protection, we are thinking about making a loan to the regular LLC (Beneficiary) to purchase the properties so in case there is a lawsuit the LLC does not fully own the properties. Also, the LLC does not owe enough money to make purchases of properties (we are thinking the IRS may question how the LLC is purchase properties if it does not have money of its own).

Thanks much,

Monica