Which Trust Is Right for You? 3 For most independent property owners, the right move is not one or the other, but a combination of both. A revocable living trust serves as the foundation of your estate plan by making sure your properties transfer efficiently, your affairs stay private, and your family avoids court intervention. As your portfolio or risk profile grows, layering in an irrevocable trust can add the next level of defense, protecting select properties from liability and helping manage taxes in the long run. Limited liability companies can also serve as an additional asset protection tool.
A REVOCABLE LIVING TRUST SERVES AS THE FOUNDATION OF YOUR ESTATE PLAN
Here’s a simple framework used by many landlords:
Situation
Recommended Approach
Revocable Living Trust
Own 1–3 rentals, focus on avoiding probate
Combine Revocable + Irrevocable
Own 4+ rentals or high-liability units
Isolate risk properties in Irrevocable Trust and/or LLC’s
Concerned about tenant lawsuits
Advanced Irrevocable Trust planning
Concerned about estate taxes or long-term wealth transfer
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