Originally Posted by BandB
In South Florida, both LLC and Trust ownership of homes and boats is common. Now, one trend is an LLC in a trust. In FL, a trust can be the sole member of an LLC. This works well for personal property. In our neighborhood about 40 % of the homes are owned by an LLC and 15% by a trust, but a lot of those owned by an LLC are in a trust.
For a boat traveling outside the US this does add some paperwork requirements to be able to prove at all times rights and ownership.
Certain forms of trusts can also own income producing LLC's and Corporations, but this is definitely not DIY work as it can have significant tax consequences. I strongly recommend an attorney and an accountant in those situations. Also when it comes to homes and boats, one needs to be very careful that the form of trust gets any tax exemptions an individual gets.
I recommend at least some estate planning with an attorney specializing in that area for all. I've seen people spend tens of thousands after a death when hundreds prior to death would have saved it all.
Good points. Personally, I like to mix trusts with other trusts and LLCs. I like it complicated, but not recommended for most.
Overall I could argue STRONGLY that the trust is the best vehicle for holding property. If one want's another layer of protection, the beneficiary can be and LLC (as well as another trust). But the property per se is not protected in either way.
LLCs require more work, reporting and fees that a trust does not have.
And if one gets complicated, the legal fees to set this up will not be a few hundred. It will be significantly more.