Announcement

Collapse
No announcement yet.

Florida Land Trust vs LLC

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Florida Land Trust vs LLC

    Any one doing this or have any thoughts regarding placing investment real estate into a land trust vs LLC?

  • #2
    I'm no expert but here are a couple of things to consider:

    • Ownership of an LLC goes through probate, but a trust avoids probate

    • LLC ownership is public but a trust is private

    • If the above distinctions are of no consequence to you, the LLC is less expensive and should be simpler

    • My understanding is that probate in FL is more complicated, time-consuming, and expensive in FL than in many other states. (If anyone has information to the contrary, please share!)

    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

    Comment


    • #3
      Thanks Johanna!  I think those are really important points to consider?   I'm currently in the process of setting up a trust for our kids that would include all of our assets when we pass on.   Would a land trust be any more helpful?  To your 2nd point.. the problem with the LLC is that my name and address is publicly listed under the LLC as a manager, etc.  If a pissed off tenant wanted to find me... he could simply look me up under the LLC?

      I also heard that the other advantage is asset protection or sort of a multi-lateral protection?   If an LLC is unilateral protection from your tenants alone.. then a land trust can potentially also protect against debtors/lawsuits?   Above and beyond the property/umbrella insurance... if someone wanted to go after my real estate properties including the LLCs I own... these would be completely protected under the land trust?   How much more expensive is it to setup and I hear this a one time cost?  Unlike paying the annual renewal fee like we do with a LLC... any lawyers in the forum?

      Comment


      • #4
        Like I said, I'm no expert. Hopefully, one of our attorneys here specializes in real estate and can comment. However, I would not consider engaging in something of this magnitude without personal (paid) advice from an experienced real estate attorney in conjunction with your CPA and/or financial planner (but I bet you already knew that   )
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

        Comment


        • #5
          Excuse my ignorance but I thought land trusts were charitable donations

          Comment


          • #6




            Excuse my ignorance but I thought land trusts were charitable donations
            Click to expand...


            You are anything but ignorant. Land trusts are a kind of RLT (Revocable Living Trust) into which a settlor (person setting up the trust) can transfer real estate for certain specific, but limited, purposes. I found this article quite informative.
            Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

            Comment


            • #7
              You want to definitely think about setting up you asset protection structures that create your Living trust, personal wills, etc... and knit them together in a

              cohesive way that protects your non-homestead assets and gives you tax efficiency and privacy.

              Feel free to PM me if you want a referral to the company that I've used for 8 years.

              Comment


              • #8
                Disclaimer: I am not an attorney or a CPA. Please consult one before you make any decisions.

                 

                A land trust will provide you with anonymity but will not provide you with asset protection other than the fact that it makes it difficult for creditors to discover your assets. An LLC will protect your assets so that a tenant can only get whats inside the LLC and ,when set up correctly, creditors can't get whats inside the LLC. There is some case law in Florida where creditors can get through a single member LLC aka "pierce the corporate vail" so it is best to set up through as a multiple member LLC. An excellent book that goes further into the subject is entitled Loopholes of Real Estate by Garrett Sutton- they have chapters dedicated to both Land Trusts and LLCs.

                Comment

                Working...
                X