Asset Protection – Intermediate



In our last article, I taught you that the Series LLC forms the base of your asset protection structure. It’s simple, inexpensive and provides a great deal of protection. And you’ll learn the basics of how to run and manage an LLC before getting more complicated.

Many clients, especially as they build their portfolio of rentals, seek out additional privacy and protection. This is great! But it does add layers of complexity and cost. But, as your assets grow, then it makes sense to up your asset protections as well.

For privacy, many investors use what is called in the real estate industry as a “land” trust. These kinds of trust do not exist in Utah and most of the country. But we have a modified version of them investors use that we call “real estate” or “property” or “asset holding” trusts. The key to this trust is that it’s not registered with the state. That means it’s a private document that keeps the owners of the trust totally off the record.

Most investors use these trusts to “hold title” to the property privacy purposes. However, these trusts do not provide any asset protection! So, you still need an LLC that will own the trust. Then the trust owns the house. See how that sticks an extra “layer” in between the property and yourself?

On the county land records, only the trust appears, not your LLC. And since the trust isn’t registered anywhere, no one can find out that your LLC is even involved. This can keep plaintiff’s from seeing all your assets and believing that you are a big target for a lawsuit.

In addition to the real estate trust, there are other asset protection tools, like irrevocable and asset protection trusts. These are very protective vehicles but do come with greater costs and hoops to jump through. So, we only recommend these after you’ve built up your assets.

But in the meantime, if you’re looking for some privacy in your transactions and holdings, think about the real estate trust. For more information, please see my website link below! I have a ton of free asset protection content.


Jeffrey S. Breglio, Esq.
Breglio Law Office and REI Mastery U
(801) 560-2180


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