How to protect assets in an irrevocable trust owned property

[Patrick3085]

We recently purchased a property we plan on STR-ing that is owned by our irrevocable trust (my wife and I are the trustees). It was done this way to meet the criteria for a 1031 exchange as the previous property was in our trust(a long term rental). I am looking for the best way to run a short term rental business through it with the least amount of liability exposure. Should I create an LLC in the trust's name and re-title the property to be in the LLC's name? Or are we better off just getting a hefty insurance policy and run the business operations through an LLC? The STR property is in Honolulu, Hawaii. I know transferring the title will restart our depreciation and will run the numbers based on that. I do have this question into my tax preparers and my trust attorney but thought I'd ask about your experiences here. Thanks in advance!

[Pete28]

@Patrick3085 Assuming the property has some value, minimally any liability would first go after that. So most likely insurance would be good idea.

[Rebecca]

Hi there @Patrick3085 👋

How have you got on?  What did you decide to do in the end? It would be lovely to hear what you decided.