Editor’s note: This is part two of an ongoing series about using trusts and LLCs in estate planning, asset protection and tax planning. The effectiveness of these powerful tools — especially for asset protection and tax planning — depends very much on how they are configured to work together and whether certain types of control over assets and property are surrendered by the property owner. Part one is To Avoid Probate, Use Trusts for Estate Planning.
Deeds must be used to transfer real estate into an LLC or into a trust, making deeds an essential part of implementing most estate plans. However, deeds should not be used in lieu of trusts, because deeds will cause many unanticipated consequences and even harmful legal and tax consequences.
