How I Saved a Real Estate Investor $60,000 with a Revocable Living Trust
How a Simple Legal Strategy Saved One Family $60,000
A client recently came into my office with a problem that many real estate investors share. He had worked hard, built wealth, and bought property to create generational security for his family. But like many people, he had set everything up in a way that could have cost his kids tens of thousands of dollars.
In this video, I’ll show you how a properly structured revocable living trust and LLC saved this family $60,000 in probate fees — and protected their assets from unnecessary risk.
Watch the full video here:
How I Saved This Real Estate Investor $60,000 by Setting Up a Revocable Living Trust
Meet Frank and Mary: Building Wealth the Hard Way
Frank and Mary (not their real names) did everything right. They fell in love, started a family, and began investing in real estate to create financial freedom for their three children.
They bought a multifamily property for $1 million and a family home worth another $1 million. Both were titled in their personal names. On paper, they had built $2 million in assets and were proud of what they accomplished. But they had no estate plan, no LLC, and no trust.
That setup meant that when one of them passed away, everything they owned would have gone through probate court.
The Hidden Cost of Doing Nothing
In South Carolina, probate fees are typically around 3 percent of your estate’s value. For Frank and Mary, that meant $60,000 in probate costs — just so their kids could receive what was already theirs.
That process also takes time. South Carolina’s probate system includes an eight-month creditor claims period, and it often takes another four to six months after that to close the estate.
In other words, their children would have waited a year or more to receive their inheritance while thousands were lost in fees.
Step One: Creating an LLC to Protect Investment Property
The first thing we did was move their multifamily property out of their personal names and into an LLC.
We formed ABC Investments LLC, which now legally owns the investment property. This separates personal and business assets.
Here’s why that matters:
If a tenant were to get injured on the property and sue, they could only go after the LLC — not Frank and Mary personally. Their home and personal accounts would be protected.
By creating the LLC, we reduced their personal liability and established a proper business structure recognized by the court.
Step Two: Setting Up a Revocable Living Trust
Next, we created a revocable living trust — a private legal document that determines how assets are managed and distributed after death.
Frank and Mary were the grantors (creators of the trust) and the trustees while alive. Their three children were named as beneficiaries.
We then funded the trust by:
Transferring ownership of their personal residence into the trust
Assigning their LLC ownership interests to the trust
Once those transfers were complete, neither the home nor the investment property was in their personal names.
That meant no probate court involvement, no 3 percent fee, and no delays. When both parents pass away, the successor trustee they named will instantly manage and distribute everything according to the trust’s instructions.
The Outcome: $60,000 Saved and Peace of Mind Secured
By properly structuring their assets, Frank and Mary’s children will receive their inheritance without paying a dollar in probate fees.
Their family’s assets are protected, their legacy is clear, and the process will happen privately and efficiently — not through a lengthy court proceeding.
This is a perfect example of how estate planning is not just for the ultra-wealthy. It is for anyone who owns a home, a business, or an investment property and wants to protect it.
What You Can Learn from Frank and Mary’s Story
If you own real estate, create an LLC to protect your personal assets.
If you have children or multiple properties, set up a revocable living trust to avoid probate.
Work with an experienced estate planning attorney who can guide you through local laws in South Carolina and North Carolina.
A few hours of planning can save your family thousands of dollars and months of stress.
Schedule a Free Consultation
If you live in South Carolina or North Carolina and want to protect your family from probate, schedule a consultation today.
Book a Consultation:
https://www.rankinestatelaw.com/book-a-consultation
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About JP Rankin
JP Rankin is the founder of Rankin Law Firm in Charleston, South Carolina. He is licensed in South Carolina, North Carolina, and California. JP helps families and business owners protect their assets through customized estate plans, wills, trusts, and business formation strategies.
Disclaimer
This article and video are for informational purposes only and do not constitute legal advice. Viewing or interacting with this content does not create an attorney-client relationship.