Twinsburg, OH · Member since 2014 · 37 posts · 8 votes
Hello everyone. Could anyone recommend a reliable and knowledgeable professional who can set up a trust or any other entity to shield myself from any future lawsuits related to my 2 rentals. I am a high level w-2 earning earning individual who is investing in real estate but i am worried if something comes up that can potentially affect my personal finances and family. I have created 2 different LLCs for each rental. Your response is mush appreciated
Hello everyone. Could anyone recommend a reliable and knowledgeable professional who can set up a trust or any other entity to shield myself from any future lawsuits related to my 2 rentals. I am a high level w-2 earning earning individual who is investing in real estate but i am worried if something comes up that can potentially affect my personal finances and family. I have created 2 different LLCs for each rental. Your response is mush appreciated
Your best defense is umbrella insurance on each rental and keeping the properties in a good and safe condition for your tenants. It's not really that big of a deal.
The fact that you have two LLC's already is proof that someone you have listened to has scared you into setting up LLC's that aren't really necessary. Again, a couple million dollar umbrella policy on two properties is probably only a couple hundred bucks a year. That's more than enough.
Hello everyone. Could anyone recommend a reliable and knowledgeable professional who can set up a trust or any other entity to shield myself from any future lawsuits related to my 2 rentals. I am a high level w-2 earning earning individual who is investing in real estate but i am worried if something comes up that can potentially affect my personal finances and family. I have created 2 different LLCs for each rental. Your response is mush appreciated
@Gurjeet Brar, I can understand your concern, especially since you're trying to protect your personal finances and your family. Since you already have two LLCs, one for each rental, I wouldn't rush into creating a trust or another entity just yet. I'd first make sure the properties are actually owned by the LLCs, your insurance matches the ownership structure, and you understand what personal liability you may still have. An LLC can offer protection, but it doesn't automatically protect you from every possible lawsuit.
I'm a real estate attorney, broker, and investor based in Maryland, and I work with property owners and investors on LLCs, ownership, and estate planning matters. One thing I've learned is that asset protection works best when the different pieces are considered together. Your ownership structure, insurance coverage, and how you operate your rental business all matter. A trust may also be helpful for estate planning, but it doesn't necessarily provide the lawsuit protection you're looking for.
I appreciate you bringing this up, @Gurjeet Brar. It's something worth thinking about as your investments grow, especially when you have other assets and family responsibilities to consider. I'd have an Ohio attorney review your current setup before making any changes. This is closely related to my work, and I'd be happy to stay connected!