LLC, revocable trust, holding company...What do I really need???

[Kerry Mertz]

I spoke to an asset protection planner (part of an asset protection company that has attorney's and CPA's) and I got completely confused about how to set up a business entity for asset protection. So I'm wondering what do I really need?

I'm a buy and hold investor and I want to start an LLC to hold my properties. The advice that I got was to set up a holding company LLC in Wyoming that holds my other LLC's that are in each state that I own property in. Since I bought the properties in my name and have financing in my name, I was told to use a revocable living trust to hold the properties in, which will own the Wyoming LLC, which will own the individual state LLC's. The revocable living trust will prevent the infamous due on sale clause from being triggered. This seems like overkill. Is all of this really necessary to protect myself from a lawsuit? I should also mention the cost to set all of this up is outrageous.

From what I understand, the purpose of the Wyoming holding company LLC is for privacy, asset consolidation into 1 yearly tax return and the laws of Wyoming will override the individual state LLC's. Wyoming laws are favorable to business owners. (Again, I am still confused about all of this, so I may not have all my facts straight.)

I'd like to simplify if possible, but not too much that I'm not protected in the event of a law suit. 

Can't I just set up an LLC in each state that I own property in, transfer title to the LLC (even though there is a risk of triggering the due on sale clause, but it seems like that rarely happens anyway) and call it a day? I know that will mean more tax returns but who cares?

What have other buy and hold investors done to protect themselves?

I'd love to get a 2nd (3rd) opinion from a real estate attorney that can help me set up my business entity (and help me with estate planning).

[Costin I.]

@Kerry Mertz If you talked with @Scott Smith, you are in good hands.