I have troublemakers in my extended family with a history of seeing death as a way to take from others. 

We set up an LLC company to own and run it but thought we should put in our trust documents that the our interest in the LLC is transferred to the Trust at least at our death.

Definitely don't want squatters and death threats! 

In a situation like that, it's as simple as going down to your county recorder office and filing an affidavit and death certificate of the deceased party.Can't comment on Prop 19 since I'm unfamiliar with that, unfortunately.

We are looking into developing a protection plan to protect us from two things: probate (upon death) and lawsuits.

UPDATE:Found out that since 3+ years have passed since the owner's death, and nobody filed for probate, the house has to go through the bank's foreclosure process. 

I am buying a 90 lot project in Canby in the fall so I will have to get another license for that.. then in some cities you need a business licenses we get licensed to death here in this state .. at least to do it right.. and were it can bite you is if you have a problem with a buyer.. first thing their attorney is going to do is check to make sure you were licensed.. the selling of real estate ( emulating a REal Estate broker) simply is not legal in this state.. its not legal really in all states.. but some just don't care and don't enforce the laws on the books.. some do though.  

You don't want to fee your investors to death.

But it takes a toll on you mentally unless you’re a glutton for punishment.

@Jon Holdman is talking about the Garn St Germain Act of 1982"Part C Preemption of Due on Sale Prohibitions DUE-ON SALE CLAUSES (d) A lender may not exercise its option pursuant to a due-on-sale clause upon--, (1) the creation of a lien or other encumbrance subordinate to the lender's security instrument which does not relate to a transfer of rights of occupancy in the property; (2) the creation of a purchase money security interest for household appliances; (3) a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety; (4) the granting of a leasehold interest of three years or less not containing an option to purchase; (5) a transfer to a relative resulting from the death of a borrower; (6) a transfer where the spouse or children of the borrower become an owner of the property; (7) a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property; (8) a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property; or (9) any other transfer or disposition described in regulations prescribed by the Federal Home Loan Bank Board. " The Full Act is at https://en.wikipedia.org/wiki/Garn%E2%80%93St.