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Real Estate Asset Protection Breakdown: How The Series LLC Structure Pairs Well With Anonymous Trusts

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    As far as asset protection planning goes, using the Series LLC alongside Anonymous Land Trusts can provide some of the most extensive coverage the law allows. To give you an idea of whether this tried and true asset protection approach is appropriate for you, we’ve broken down the basics for you below.

    The Role of The Series LLC Structure

    If you aren’t yet familiar with the Series LLC, take some time to get to know this entity. This variety of LLC was designed with scalability in mind. It uses a parent-child hierarchy: the “parent” LLC, and a potentially infinite number of “Series” or baby LLCs beneath it. Fortunately for us real estate investors, every time you scale up and incorporate a new asset into the structure, it can go within its own Series, where it will receive the same liability protections as if it were within its own Traditional LLC. Without all the hassle of managing multiple traditional LLCs, too.

    These features of the Series LLC make it an especially useful tool for compartmentalizing assets. Separation of assets is the first of two major principles of asset protection. The goal is to make it difficult to connect your assets to you or each other (because, of course, that could lead back to you). By isolating each within its own child Series, the Series LLC makes a great tool for separating assets easily.

    The Role of the Anonymous Land Trusts

    For the uninitiated, an Anonymous Land Trust is a type of revocable trust that plays one very specific role: the trust holds title to a property. For this reason, you may hear it referred to elsewhere as the title-holding trust. Its primary perk is that the land trust keeps your personal name off of public records. But it can also strengthen other structures like the Series LLC. The Anonymous Land Trust pairs well with the Series LLC in two main ways.

    First, each property you own can be placed into a land trust.

    Regardless of how you use land trusts, the tool’s main function is to give you anonymity, which happens to be the other basic principle of asset protection.

    Only an Asset Protection Attorney Should Set Up Legal Structures

    If you’re thinking that all of this sounds fabulous, you may be wondering if this is the way to protect your assets. That decision is best made between you and the lawyer you choose to assist you with executing your asset protection strategy.

    We may have made this structure sound simple here, but the reality is that properly managing your network of entities and trusts is essential to receiving all of the necessary asset protection benefits. We recommend reading up even more about these structures to understand them, and then bringing any questions to an attorney with experience using these tools for asset protection.


    Scott Smith is a current real estate investor, attorney and CEO of Royal Legal Solutions.  Royal Legal Solutions as law firm that is dedicated to helping real estate investors protect their assets.  Leveraging his prior experience in multi-million dollar litigation, he now uses his knowledge and experience to provide the most advanced forms of anonymous asset holding protection for his clients.

    Scott has over 1,000 clients all over the US.  The same systems that he recommends to his clients are the systems he uses for himself.  His team provides effective strategies commonly reserved for the $20+ millionaire class to the average investor. Learn more about how Scott Smith’s can assist you with Asset Protection For Real Estate Investors.

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