Quick Answer: Should I Put My House In A Trust Or LLC?

Should rental property be in an LLC or trust?

Rental Property

Your rental property should be owned in an LLC.

Rental properties generate income and wealth but they can also create liabilities.

An LLC owned by one person or a married couple isn’t too difficult to manage and generally doesn’t require a separate LLC tax return.

Is a trust better than an LLC?

A living trust is often used to protect assets from the expense and delays of the probate process. A revocable trust is taxed as the grantor’s personal assets, while an irrevocable trust is taxed as an independent legal entity.

Why would you put your house in a trust?

The main reason individuals put their home in a living trust is to avoid the costly and lengthy probate process at death. Since you can access the assets in the trust at any time, a revocable trust does not provide asset protection from creditors or remove the home from your taxable estate at death.

Can a LLC be in a trust?

Trust Membership

Because the ownership interest in an LLC is considered an asset, it is possible for a living trust to become one of the members of the LLC. With all states now recolonizing single-member LLCs, it is possible for a living trust to be an LLC’s only member.