There are many types of trusts. A living trust is a common estate planning vehicle that offers probate avoidance but no asset protection. In such a case, the real estate is best titled in the name of the LLC with the member interests owned by the living trust. When one party passes, the LLC membership interests are transferred according to the terms of the trust but the property does not have to be retitled, since the LLC continues to own it.
Another trust is the spendthrift trust, an irrevocable vehicle set up by parents for their children. The assets of the trust may not be reached by later creditors, thus protecting immature and free-spending kids from themselves. Because an independent trustee administers the property until it is distributed, a greater measure of control is achieved. However, some trusts pay higher taxes than LLCs and may not be advisable for strong income properties.