Transferring Property to a Revocable Land Trust As Personal Liability Shield

[Julius Vincent]

I have a client who is on the verge of purchasing his first property, an out-of-town LTR. The property will be in his name, but he's wondering if transferring it to a revocable land trust, then having the trust lease out the property to his LLC would help him avoid personal liability (bank will not let him transfer directly to his LLC because of the due-on-sale clause).

I suspect this wouldn't preclude personal liability since the property wouldn't be held directly by an LLC but would love to get an attorney's brief thoughts.

[Chris Seveney]

Quote from @Julius Vincent:

I have a client who is on the verge of purchasing his first property, an out-of-town LTR. The property will be in his name, but he's wondering if transferring it to a revocable land trust, then having the trust lease out the property to his LLC would help him avoid personal liability (bank will not let him transfer directly to his LLC because of the due-on-sale clause).

I suspect this wouldn't preclude personal liability since the property wouldn't be held directly by an LLC but would love to get an attorney's brief thoughts.

OVERKILL. Ask your client what are they concerned about being sued for that would not be covered by insurance?