Protect Assets Strategy

If I move my house into an LLC and rent it, my understanding is that I am limiting my liability of the house to the assets that I put into the LLC (just the property itself).

But what if I get into a car accident and get sued? Is the property in my LLC safe from lawsuits against me?

Thank you all for your consideration!
If I get into a car accident (or whatever) and have a rental property in an LLC would the other person in the accident be able to sue my LLC even if it had nothing to do with the accident?

1.Depends on what state your rental house is located in.
2.Does your State provide “Charging Order” protection for assets owned by an LLC? If not like CA, then you would be advised to place risky assets such as a rental property into a Limited Partnership (LP or Family-LP) If your State does provide Charging Order Protection for assets in an LLC then yes, it makes sense. However, you need to ask your lender if there is a current mortgage on the property and explain to them you are transferring the title for Asset Protection. If you do not you risk having the loan or note accelerated and called due. Garn St. Germaine Act of 1982, If they do not allow that, you may still with more complex use of placing rental unit into a Land Trust then into an entity such as a LP or LLC with "Charging Order" protection.
3.Does your State have Series LLC? Only about 8 States do, if so you can create one LLC with different series contained within the one LLC. Each asset, such as rental property, bank account, IRA, gun collection, farm, ranch, auto collection, etc. would be segregated by seperate series but all within a single LLC. If not, you would want to segregate each asset you want to protect away from any other asset, thus you may have to create multiple legal entities to segregate each asset you want to protect from Predators. You would want to work with a Asset Protection attorney and a good tax-planning Income Tax professional to develope a strategy for your family.

If you cause a car-wreck and hurt or kill anyone they can pursue a tort claim against you and if they WIN a money judgment they can pursue your assets that are "naked" or not owned within a strong asset protection entity such as a LP or LLC (in States that have charging order protection). Note: Many estate planning attorneys advise clients to hold title to all assets within their Revocable Intervivos(Living) Trust. This is poor asset protection strategy because a "Living Trust" is a disregarded entity and would not protect your assets from creditors.