As long as you file it, you have protection from the charge of fraud.Tip: if you file Form 8082 to protect yourself, send your tax return in by mail.  

You'll also want to coordinate with your estate plan, and consider getting an estate plan if you do not yet have one in place.As to the trust, that's generally an estate planning tactic rather than asset protection. 

Account Closed a PMC has two options to get liability insurance (tenant slip & fall) protection:1) Get added to owner's policy as Additionally Insured (NOT named insured).2) Setup a master commercial policy and add every property they manage to it and then charge those owners the cost of the policy.Otherwise, a PMC CANNOT get liability coverage on a property they have no ownership interest in.So, nothing wrong with their request.

I am here to create a business strategy that protects personal and business investments and mitigates risk,  procure a coach or mentor, and set up tax strategies to create long-term wealth for myself and my family. 

As for the legalities of setting up an LLC to protect you and your partners, I would consult with an attorney for best judgement. 

It adds extra protection for your assets.

I have looked for examples of landlords that were protected by their LLC and always come up empty handed.

Forming an LLC for your rental property can offer liability protection, but no real tax benefit.

Apparently, local jurisdictions here are saying they want more affordable housing, but in the same sentence will also say that there will be more regulations, more environmental protections, and more hoops to jump through to develop starter homes. 

An LLC is useful for two things: anonymity and legal protection.