Land trusts can provide asset protection benefits by providing you with privacy of ownership for real property. Each piece of real estate can be placed into a separate land trust. If a lawsuit is associated with one piece of real estate, other properties titled to different trusts are unaffected.
Privacy of ownership provides lawsuit deterrence, which is a form of asset protection. By privately owning property an individual who is being sued would appear to have no assets to satisfy a judgment, if no assets can be located by a legal opponent it drastically reduces the odds that a suit will be filed.
Land Trusts are private documents that hold title to real property, and although public records can be searched to identify property ownership, only the trust name is public information in this case. They are not asset protection trusts but they can help keep prying eyes from knowing what you own.
In addition, an LLC can be formed that records a second mortgage against a property that strips any equity from the real estate. These privacy techniques implement legal instruments that can deter a lawsuit.
Land Trusts can be established very quickly and are excellent at separating real estate from one’s personal name and are highly advisable for home owners and real estate investors.