As Mike mentioned a revocable trust does not provide any asset protection. My wife and I setup our asset protection structure a while back; DM me and I can explain what we did. I am not an attorney.
Investor · Broward County, FL · Member since 2018 · 1k+ posts · 938 votes
4y
A revocable trust does not bring any asset protection. Florida Land trust give some asset protection.
For just a revocable trust and a Florida LLC, probably most estate planning oriented attorney could do it.
However if you look at an asset protection structure, there are a few attorney specialized in that area in the tri-county.
There is an expensive one in Boca Raton that I would not recommend at all.
There a few others locally that have good websites with plenty of information, but I have no personal experience with them.
And there are also the few nationwide outfits that are focused on real estate investors that have been mentioned many times in this forum, but they don't have a local office.
As Mike mentioned a revocable trust does not provide any asset protection. My wife and I setup our asset protection structure a while back; DM me and I can explain what we did. I am not an attorney.
Yes, agree, I know a revocable trust alone does not provide asset protection, just anonymity, But Garret Sutton, writes in his book you do get asset protection as well if the beneficiary of the trust is not you personally, but an LLC.
Can you please give me your feedback about this strategy?
Now my question is, In Florida, a husband and wife LLC is considered Single member LLC, which doesn't give you charging order protection. But if I include my 2 daughters on the LLC, so its 4 of us, does it become multi member LLC?
Investor · Broward County, FL · Member since 2018 · 1k+ posts · 938 votes
4y
While an LLC with your wife is technically a multi member LLC, if you file jointly for your taxes, it will probably be seen as disregarded by the IRS and a judge may decide that charging order won't apply.
My setup is as follow:
The base is my living trust. My personal residence has a Lady Bird deed to my living trust. All my personal bank accounts are titled to my living trust. My IRA and 401k beneficiaries are my living trust (it may be more advantageous to have designated beneficiary instead, but in my specific case it was not).
I have a WY multi member holding LLC owned at 99% by my living trust and 1% by a C Corporation. The C Corp is the manager of the WY LLC and of most of my other LLC.
The WY LLC owns my brokerage accounts and all the sub LLCs.
I have multiple sub LCCs own my rental properties and other syndications. For the properties in FL, I have single member LLCs, manager managed. On top of it I have Florida land trust on each property.