TRUST IN LLC? - TRUST IN TRUST? - Posted by Jerry - IL
Posted by Jerry - IL on August 04, 2003 at 13:13:36:
I’m an old guy who lost his retirement and is committed to rebuilding it through accumulating maybe a dozen rental properties in the next four years. I’m not planning to become a huge 100-unit landlord; just enough to live comfortably.
Last week I bought my first keeper and have a contract for my second and I’m scared stiff. I immediately bought landlord insurance. I took the property in the name of a trust, which I set up through a bank’s trust department. Because I’d like to start off right and not have to go back and undo what I’ve done (it might be a little late for that), I’m wondering if I should open an LLC. I’m told that to have it done by an attorney will cost $1,000-$1,500. Some have told me to open a separate LLC for each property and some have said a separate trust for each one and that all the trusts will have the LLC as the beneficiary. I don’t have another soul to make my trustee OR participate in the LLC (if you need another person). Has anyone ever discussed the merits of having a “master trust” that is the beneficiary of all your other trusts, each holding one property?
Of course, I would like to keep it as simple as possible, while maintaining proper anonymity and asset protection.
I understand the need to keep perfect records of money in/out on each property, but the thought of having to open separate checking accounts for every property gives me palpitations. Isn’t there a simple way to responsibly own property, but cover yourself in the context of this sue-happy world?