Greetings,A very experienced friend in the business puts each park owned home into a real property trust and the park itself into a land trust. Basic idea is to provide a level of compartmentalization and potentially some anonymity and asset protection against those looking to try the legal lottery.Anyone else do something similar? Thoughts on pros/cons?I love the level of depth and knowledge many of you on this forum have. :)Regards,High Plains Drifter
We use land trusts for the real estate. You already know all the reasons (‘crown jewel’ of the title is not in the entity doing business with the litigious public, converts real property to personal property [thus, easier to sell, may not trigger due-on-sale clause], circumvents probate, anonymity). The only cons I’ve run into are that banks can get confused by land trusts.We just use regular LLCs for holding the titles to our wheel estate (the mobile homes) - but a separate LLC for each park’s homes. I suppose you could set up a separate LLC for each mobile home, or maybe each grouping of 5 of them… but that might be overkill. You decide.All the best to you,-jl-
Don’t forget there is an annual filing fee for corporations, trusts,etc. also a separate tax form. The costs can add up quickly! My accountant handles all of that for me and it does add up for sure.