Series LLCs and Land Trusts: The Foundation of Smart Real Estate Investing

 Posted on January 27, 2026 in Asset Protection & Wealth Preservation

Real estate investing can build wealth, but it also comes with serious risks. Lawsuits, liability claims, and creditor actions can threaten everything you have worked to build. Smart investors protect their assets before problems come up.

Two powerful tools for real estate protection are Series LLCs and land trusts. Understanding how these structures work and how they can be used together gives you a strong foundation for safe and successful real estate investing. A Kendall County asset protection lawyer with over 20 years of experience can help you choose the best strategy for your situation.

What Is a Series LLC?

A Series LLC is a special type of limited liability company that allows you to create multiple separate divisions, called series, under one main LLC. Each series operates independently and can own its own assets, have its own members, and maintain its own bank accounts. Most importantly, each series has its own liability protection.

Illinois recognizes Series LLCs under the Illinois Limited Liability Company Act, 805 ILCS 180. This statute allows investors to create a master LLC with individual series underneath it. Each series functions like its own LLC.

Why Set Up a Series LLC?

The key advantage of a Series LLC is liability protection between series. If one property is sued, the lawsuit is less likely to reach assets held in other series. For example, if you own five rental properties and put each one in a different series, a lawsuit against one property should not affect the other four. This separation of liability is what makes Series LLCs so valuable for real estate investors.

How Does a Land Trust Work?

A land trust is a legal arrangement where a property owner transfers the title of real estate to a trustee, who holds the property for the benefit of one or more beneficiaries. The trustee has legal title, but the beneficiary maintains control over the property and receives all the benefits of ownership, including rental income and appreciation.

Land trusts are commonly used in Illinois for privacy and asset protection. When you place property in a land trust, the trust name appears on public records instead of your personal name. This keeps your ownership private and makes it more difficult for creditors or potential litigants to identify which properties you own.

Land trusts also simplify estate planning. When the beneficiary of a land trust passes away, the property can transfer to new beneficiaries without going through probate. This saves time and money for your heirs and keeps the transfer private.

Why Use Both Series LLCs and Land Trusts Together?

The strongest real estate protection strategy often involves using Series LLCs and land trusts together. Here is how this structure typically works:

• You create a master Series LLC.

• Then you create individual series within that LLC, one for each property or group of properties.

• Next, you place each property into a separate land trust.

• Finally, you make each series of your LLC the beneficiary of one land trust.

This layered approach gives you multiple levels of protection. The land trust provides privacy by keeping your name off public records. The Series LLC provides liability protection by separating each property into its own protected series. If someone sues over one property, they see only the land trust name on public records. Even if they discover the LLC beneficiary, the lawsuit should only reach that one series, not your other properties or personal assets.

This structure also makes managing multiple properties easier. You can maintain one main LLC with the state, avoid the cost of creating and maintaining separate LLCs for each property, and still get strong liability protection for each investment.

Call a Kendall County, IL Asset Protection Attorney Today

Protecting your real estate investments requires careful planning and the right legal structures. If you own multiple properties or are building a real estate portfolio, a Montgomery estate planning lawyer can help you set up Series LLCs and land trusts that provide maximum protection.

Our firm has over 20 years of experience helping Illinois investors protect their assets. We offer free consultations to discuss your situation and recommend the best strategies for your goals. Call Gateville Law Firm at 630-780-1034 to schedule your consultation today.