LLC inside a trust vs just getting a 2 million umbrella policy

[Mary Holden]

We own multiple properties. I know that each LLC would have to have it's own insurance on the property it holds. I know that if it is a commercial property, it will have to have a commercial umbrella policy. Our estate attorney is recommending that we set up a separate LLC for each property. If we do that, it's going to cost a fortune in fees each year. The properties we currently hold in our names (no llc, etc.) are covered under our existing umbrella policy. What are the advantages of complicating things by creating these llcs and then signing them over to the revocable trust?

[Greg Scott]

The way you run your properties and think about risk is 180 degrees different from the way I run my properties and how I think about risk.

If you are looking for protection, you have probably done the opposite and created risk for yourself.  You have a huge target on your back by having paid-in-full properties.  Every ambulance-chasing lawyer and fraudster is out looking for a reason to come after you.  There are tons of databases that people access every day that shout out "sue me" because your property is clearly a rent property with no mortgage.

Saving a few bucks each year to avoid a catastrophic loss is the opposite of what I do.  I don't focus on cutting insurance costs.  I am happy to pay for the insurance that protects my estate from catastrophic loss.

I cant (and wont) answer your question. Based on what you said you are seeking, I think you are asking the wrong question.