Irrevocable Living Trust, Revocable Living Trust, LLC?

Question

Hello Investors,

My husband and I currently own investment properties in which we purchased individually, prior to our marriage. And we manage them ourselves. We are looking into developing a protection plan to protect us from two things: probate (upon death) and lawsuits. From my findings, it looks like LLC doesn't really provide protection against lawsuits and an irrevocable trust will only help avoid probate. Does anyone have any suggestions on what we should do to protect ourselves? We currently have an umbrella coverage policy. Thanks!

Scott Williams · Answer

Hi Priscilla,

You might want to reach out to Attorney Todd Litman at http://www.toddlitman.com/

He is located in Tustin and specializes in setting up Living Trusts, entities, etc.  I have been very impressed with his knowledge and experience, plus his rates are reasonable.  As you noted above, setting up a trust will avoid probate and Mr. Litman can go over the pros & cons of setting up an entity for liability protection vs. umbrella insurance, etc.  You will want to discuss your personal situation and needs with an attorney, as asset protection is not a "one size fits all" situation.

Feel free to tell him I referred you if you like.

Scott Williams