My understanding is this is still a grantor trust, and I don’t think it’s going to offer any protection in a lawsuit, but ask an attorney for a real answer on that  All I can suggest is don’t make it overly complicated.

Not doing this can lead to fines, or, even worse, if the LLC is involved in a lawsuit, it can be disregarded because it is not registered to do business in the State.

Of course the public records are still there to find lawsuits but this development could lead to someone renting to a bad risk because these debts are now invisible before a case is filed in court.https://www.cnn.com/2023/09/21/politics/medical-bills-credit...

Your expertise and advice would be highly valuable.The biggest liability I see is an aged lawsuit that arises. 

Any title company attorney does quiet title lawsuits all the time.

Hughes had a weak attorney who accepted a full settlement check, Hughes attorney cashed the $3000 without carrying the lawsuit on.

Minnesota set landmark precedence in how claims were handled when we (various builders) filed class action lawsuit vs ever major insurer in MN, with countless homeowners, and won. 

Zillow refused, so the seller filed a class action lawsuit alleging that Zillow was, among other things, violating the state’s Deceptive Trade Practices Act and Consumer Fraud statute.

Provided you properly maintain your properties law suits are extremely rare. 

@Roman Ustoyev a better strategy may be to set up LLC protection-friendly state like Wyoming or Nevada and then register to do business in Connecticut.To your benefit, there is a line of cases holding that Wyoming / Nevada law must apply even if any lawsuits were to originate from Connecticut.Set up LLC there and then venture into the less friendly states like CT / NY.