Using a Land trust with LLC as beneficiary is a powerful combination for landlords and real estate investors.
Many landlords title properties in an LLC for protection. While this may provide liability protection for the owner, it does not afford any privacy. If you look up the LLC online at the Secretary of State website, you can find the owners of the LLC, and (if the registered address is your home address) the home address of the landlord! And, if the LLC owns several properties, a search of the LLC name through the county clerk’s office will reveal other properties owned by the same LLC.
Enter the land trust, a revocable living trust used to title each property separate in an anonymous trust name. A land trust is not recorded in public records, so nobody knows the trust beneficiary except the beneficiary and the trustee. Using a land trust with LLC as beneficiary packs a one-twp punch: privacy and protection. Each property is titled in a separate land trust with the trustee being a person with a different last name than the landlord. This way, when you collect rents, you claim to be the “property manager”, not the greedy landlord.
At Bronchick & Associates, PC, we can create the LLC/Land Trust combo for an affordable price. Give us a call and we can quote you a rate, depending on how many properties you want to include.
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