MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

Don't Lose Your Assets to a Simple Mistake

4 Jun 2026 · 1 min

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1:25

In this instructional monologue, Mark Kohler explains how a revocable living trust differs from a Wyoming LLC for asset protection. He clarifies that a revocable living trust offers no creditor protection; its benefits are avoiding probate, shielding assets from heirs, and certain tax advantages. For stronger protection, especially for real‑estate holdings, he recommends adding a Wyoming LLC, which can own subsidiary LLCs in other states that hold the property titles. He describes a common structure where the trust owns the Wyoming LLC, which in turn owns the state‑level LLCs. Kohler warns against advisors who indiscriminately sell Wyoming LLCs to everyone, noting his firm creates thousands of entities each year but only places about 5% in Wyoming, focusing on client interests. He also addresses concerns about mortgage due‑on‑sale clauses, stating his experience shows they rarely trigger when properties are transferred to LLCs. The talk concludes with a brief note that partnership arrangements (e.g., 50/50 ownership) can also be accommodated within this structure.

Chapters

What is the difference between a living trust and a Wyoming LLC for protecting assets? I'll put here at the bottom a living trust, and I want you to have a revocable living trust. A revocable living trust gives you no asset protection. It protects your assets from the kids. It protects it from federal tax. It protects it from waste and lawyers and probate. That's what it helps protect you from. But when you go out and buy real estate, we might want an extra layer of protection. And so for some clients, be careful if you're getting sold a Wyoming LLC. For every $50,000 of the LLCs we set up, we do one Wyoming LLC because they're not for everybody. So if you're talking to someone that sells them to everybody, you got the wrong advisor, and I'll tell you that right now, and I'll go toe-to-toe with them. We have a law firm where we set up thousands of entities every year. 5% of them are in Wyoming, and we're looking out for our clients, not ripping them off. Now, Wyoming LLC, they're great for asset protection. It's called a cope, goes here. Then that LLC owns your other LLCs in other states that actually are on title to your rental property. Don't worry about mortgages. You're going to transfer the property to the LLC. The due-on-sale clause will not apply in 25 years, and transferring thousands and thousands of titles on rental property LLCs. We've never had a client pay under the due-on-sale clause. You want that asset protection. So you have asset protection here, you have asset protection here, and the trust owns the Wyoming LLC. That's how it works. 100%, 100%, 100%. Now, let's say over here you have a partner, you're 50/50. That's cool too. You can do that. So that's how this Wyoming LLC works.