[USER]

Do you hold your primary residence in an LLC or trust? Why Do you let people know you own it or do you just say you rent it?

what are your reasons for doing so? Additionally, do you openly disclose that you own the property, or do you prefer to say you rent it?

I’m curious to hear about your experiences and the pros and cons of this approach.

Looking forward to your insights!

[Artem]

for asset protection, estate planning, tax benefits, or liability concerns?

Also, is the property located in a specific state, as laws and benefits can vary by jurisdiction?

[Dion]

Long list of reasons none of my properties will ever be in a llc.
And one huge reason I don’t have a trust.

[McNeeley]

100% in a trust. And it’s not just as simple as putting it in a trust. It’s part of the overall estate plan.

The reason people don’t do this is becuase it’s expensive.

You can probably put it in a trust for $1000-2000, but if the trust is not structured properly and all the contingencies in place and everything else with estate planning is not set up it being in a trust can be worse than if it were in your name.

A full Estate plan costs $3000-10,000 depending on complexity. So, the trust conversation isn’t a “oh, I’ll just throw it in a trust” type of thing.

There are many ways to get lower cost estate planning done like some states have a legal plan insurance type program that would invoked it, some employers offer the same insurance style legal plan (do NOT go through a lawyer that works for your company directly), etc.

These plans are sometimes free to the employee or as little as $300 a year (you only need it for the year you set it up).

[Tung]

LLC is for isolating your business liability from affecting your personal asset.

It’s usually used for rental houses/ business, not primary residence

My primary residence is under a simple trust and I told my friends it belongs to me.

If you’re very rich, need lots of asset protection, willing to pay for elaborate structures, registering out of states for secrecy AND the yearly cost of maintaining this structure then you should talk to a lawyer specializing in this area

[Shawn]

Trusts are used for estate planning. They allow you to keep your owner occupied homestead exemptions and owner occupied mortgage. They also can be used to hide the true owner.

By avoiding probate you save money at death and can move control of assets faster.

An LLC does not make sense for an owner occupied property. It’s harder to finance and you might pay more property taxes.

If you are residing in the property it probably doesn’t provide much asset protection. Neither solution offers tax benefits.

[Leah]

Trust. Because the trust owns it. Not me. I don’t own anything.

[Author]

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