Living trust or a business trust

[Pockets13]

What is the name of your state (only U.S. law)? Utah
I want to set up a trust and a LLC with the trust as the sole member of the LLC but I am not sure which trust it should be. What type of trust is better? Living trust or a business trust?
Thank you in advanced for the help.

 

[seniorjudge]

What, exactly, are you trying to do?

 

[Pockets13]

What, exactly, are you trying to do?

Asset protection. I read that if you create a LLC with your trust being the sole member, it is almost bullet proof asset protection...

 

[seniorjudge]

Asset protection. I read that if you create a LLC with your trust being the sole member, it is almost bullet proof asset protection...

That "almost" gets you ...

 

[tranquility]

It just makes collection more complex and will have a fairly high compliance cost.

 

[Pockets13]

So what is the best asset protection?

 

[tranquility]

Plenty of insurance.

 

[TrustUser]

with regards to insurance, you might want to look into an umbrella insurance policy. in my experience, you need to go to wherever you have your automobile insurance.

with regards to llcs, i am not real familiar with them, but i would look into them further. i think they do provide you with some protection. but from what i have read, they often dont work with a judge when it is a one-man llc, and not a real reason to have a business. you can search the net and find numerous examples of this.

if you own real property other than your home, you might want to consider placing each property into a separate trust with a professional trustee, who has his own llc. a title holding trust is a name for a trust in which the trustee acts only upon the direction from the beneficiary.

btw - living trust, business trust, title holding trust, etc. - these are not legal names. they are simply ways of describing the purpose of the trust that one is making.