Land Trust
I have been reading a lot in this forum about LLCs, and I understand that it could be a problem with my lenders if I tranfer ownership of my properties to an LLC. But, what about a land trust? An attorney told me that a land trust is not very helpful in protecting you from law suits, but it can protect your privacy. Does anyone have any experience with this? Thanks.
Land Trust are great for privacy issues. If someone does an asset search on you and nothing comes up they are far less likely to sue. Land trusts will not protect you from a lawsuit but they are a form of protection in providing you the investor secrecy of ownership from the rest of the world.
"Land Trusts For Privacy And Profit" by attorney Mark Warda.
Spend the $ 35.00.
Thank You.
SpyBoy
Quote:...."Federal law prevents activation of the due on sale clause on a transfer to a trust of your primary residence...but not so on an investment property." Can you elaborate on which Federal law you are refferring to?
Code of Federal Regulations TITLE 12, Chapter 13, §1701j–3, Preemption of due-on-sale prohibitions
Quote:
On 2006-01-14 00:30, NewKidInTown3 wrote:
Quote:...."Federal law prevents activation of the due on sale clause on a transfer to a trust of your primary residence...but not so on an investment property." Can you elaborate on which Federal law you are refferring to?
Code of Federal Regulations TITLE 12, Chapter 13, §1701j–3, Preemption of due-on-sale prohibitions
[ Edited by Darryle-CA on Date 01/14/2006 ]
Tha answer to that question is determined by a number factors, for example:;
a) how did you purchase or obtain control of the property;
b) what are you trying to accomplish, and why;
c) is it just you as the owner/controller of the property, or are their others (passive investors, etc.);
d) are you going to re-fi as a business, or in your individual capacity;
e) will you be able to re-fi in the entity capacity only, or will you be required to personally guarantee the loan;
f) what type of trust are you considering. For example, a "Illinois-Type Land Trust" aka; land trust, is fundamentally different than most any other type of a trust. There are dozens (more actually) of types of trusts, which are used for different purposes and have distinct attributes.
Just one example; if privacy, asset protection, flexibility and control are a primary concerns, one may choose to have the property title held in a Land Lrust, with a member managed LLC (or LP) being the Beneficiary of the Land Trust, and the manager of the LLC being the Trustee of the Land Trust.
There are dozens of methodoligies and techniques that can be used. Of course, if one were to use something they did not understand, that could be counter-productive, and have serious un-desired consequences.
Thank You. SpyBoy
Bueller? Anyone?
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