A living trust's main job while you are alive is control and probate avoidance; for real liability protection, talk to an attorney, and know that an LLC only protects you if it is run properly. A living trust can provide some benefits during your lifetime depending on what you are trying to accomplish, but its biggest role is directing your assets and keeping your home out of probate later. The belief we push back on is that dropping a property into an LLC automatically shields you from lawsuits. That protection only holds if the LLC operates as a truly separate entity, with its own accounts and no co-mingled money. Fund the LLC out of your personal checking or savings and you can undermine the very liability shield you set it up for. There are also financing consequences worth understanding: - The major loan programs (Fannie Mae, Freddie Mac, FHA, VA, and USDA) lend to individual borrowers, and each permits an eligible living trust. None of them lend to an LLC. - Moving your home into your living trust does not trigger the loan's due-on-sale clause. Under the Garn-St Germain Act, a lender cannot call the loan on a transfer into a living trust where you are and remain a beneficiary and occupancy rights do not change. A transfer to an LLC has no such statutory protection, so it can trigger the clause. For a financed primary home, a trust is usually the cleaner tool. For genuine liability protection, ask an attorney whether an LLC, insurance, or an umbrella policy fits your actual risk.