Land Trusts and LLCs for Asset Protection

2 Replies

I recently listened to BP Podcast 109 regarding asset protection. I think it is brilliant and Scott makes a perfect argument for why you should be structuring your properties for anonymity as well as why an umbrella policy isn't the "cure all". I am still a little confused about some of the advanced structuring. Hopefully @Scott Smith can jump in here and save the day (or another who is intimately familiar with asset protection).

I tried to set up the structure flow on paper to wrap my head around what owns what and which thing's name is where. I think I have it, but I'd like to get a little clarity. Please see my poorly done image. I didn't expand the fix & flip area because I'm not in that industry at this point.

1. Is the LLC the Beneficiary in the land trust?

2. Am I the Trustee in the land trust?

3. I live in Colorado where we do not have Series LLC and I don't know anything about trusts. Can I still do this in Colorado? Or is it recommended to go out of state for this (I hear Texas is nice)?

Kind regards,


I like the info graphic.  Solid work, @Bryan O. . After listening, that was the impression that I got as well, but wanted to hit the forums to confirm. Right now, I have an LLC that I buy my buy/hold properties in. In order to ensure that the LLC is not a disregarded entity, my lawyer created a trust where I am the trustee and my kids are the beneficiaries. The trust owns 5% of the LLC and I own 95%.

It seems like the idea is flipping my structure upside down... Does anyone else have a structure like mine?

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here