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Updated over 8 years ago on . Most recent reply presented by

User Stats

75
Posts
60
Votes
Katherine Robbins
  • Interior Decorator
  • Barcelona
60
Votes |
75
Posts

Having a Trust run an LLC

Katherine Robbins
  • Interior Decorator
  • Barcelona
Posted

Hi all,

I've heard that it's smart in an asset protection way if you setup a Revocable Living Trust to run your LLC if your LLC is a real estate investing company (i.e we flip houses). I don't know much about this concept and was wondering if there was anyone out there that would have some feedback or advice on the matter. Obviously our LLC offers us personal protection but what would be the benefit of using a Trust when investing in real estate? How would they be structured? Who is the Trustee, Trustor or Beneficiary in this situation? Any information would be helpful! Just want to learn a little more about this stuff.

Thanks!!  

Most Popular Reply

User Stats

207
Posts
104
Votes
Drew Fein
  • Attorney
  • Denver, CO
104
Votes |
207
Posts
Drew Fein
  • Attorney
  • Denver, CO
Replied

@Andy D. and @Bryan O., interesting discussion. With regard to scenario 2) above, the DOS would be triggered by the transfer from the trust to the LLC, even if the trust has 100% membership interest in the LLC, just as it would be triggered if I transferred my mortgaged property in my own name to my own LLC in which I own 100% of the membership interests. Darn DOS clause.

*NOT LEGAL ADVICE*

  • Drew Fein
  • Loading replies...