Umbrella insurance enough or LLC(s) necessary? See our scenario...

[Ray Heraldo]

Background: Our primary residence is in California. We have several long term rental properties in Utah. We recently purchase an STR in Florida. The 2 primary concerns, 1) asset protection, 2) transferring properties into our living trust.

Questions:

1) Is umbrella insurance enough or with multiple properties across states, LLC(s) is advised?

2) If yes, LLC is needed, how to structure? My initial thought was to have separate LLCs, one for Utah properties and another for the FL property. Or, is it enough to have a single LLC for ALL properties?

Thanks in advance,

Ray

[Jason Zundel]

Certainly a bit biased here, but we would strongly recommend setting up LLCs for the properties, and ideally pairing them with a holding company in WY, DE, or NV to fully separate the risks and liabilities of each of the properties from your own personal liability, and vice versa. Your best protection will come by having each property in it's own LLC as well, though at minimum one per state. The goal of insurance is to accept your money and not make any payments out, whereas a structure of LLCs is designed and owned 100% by you and for your protection. FL and CA are each a bit of a unique scenario as well, so if you want to reach out directly, I'm happy to talk one-on-one about the details.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.