What's A Land Trust & Why You Should Remove Your Name from the Deed
What is a Trust/Land Trust??
Hope you enjoy my reply and addtional response given by the Illustirous Mr. Bill Gatten of the No. American Realty Services the PacTrust/Equity Holding Trust(tm) service company!
The Question:
"Would you please explain to me what exactly it means to place your house/property in a trust? I'm sure I haven't phrased that right, however, I need to know what it means etc."
A. TRUST-(Trust) is an Noun. A tool or legally recorded document used for private holding or transfer purposes, like family estate-planning, wills, living wills, dividing family, personal, and Real Estate assets through anonymous, proceedings(ergo in Trust).
The process of forming a Trust involves an
(A.) Asset(Personal or Land),
(B.) Beneficiary(ies) owners and parties having an interest in the asset(s);
and the
(C.) Trustee, person or entity whom acts at the direction of the Beneficiary(ies) regarding transfer of ownership and/or any portion of interest thereof of all assets held within the trust agreement.
The Trustee receives all notices and makes payment on all financial obligations regarding the assets held; additionally the Trustee is prohibited from divulging the identity of all beneficiaries within the Trust agreement unless subpoenaed by a judge/court to uncover criminal dealings.
Q. WHY I SHOULD GET MY PROPERTY OUT OF MY NAME?
A
The Holding real estate in your own name is tantamount to walking down a busy street with a "SUE ME" sign on your back. Why people continue holding titles to RE in their own names absolutely floors me.
Why?? It is a very inexpensive proposition to put your properties into simple land trusts (all in one, or one trust for each property) and let someone else hold the title for you, so that you can't lose it in a law suit.
What does any attorney look for when his client asks him to sue you? Real Estate! What if the public record shows that you don't own any?
What are your chances of being sued? Zip point kazingo: that's what!.
How many attorneys do you know who will take a case on contingency without knowing with absolute certainty that they have at least a pound or two of the softest flesh to work with?
A simple land trust hides the title from prying eyes (neighbors, attorneys and judgment creditors, including the IRS): but having a co-beneficiary in the same land trust...
especially in the form of a two-member LLC can virtually armor-plate your real estate holdings.
Cost for this documentation and delivery could run about $199 to once and for all GET THAT PROPERTY OUT OF YOUR NAME and into the name of any trustee you choose.
But for cryin' out loud...PLEEEEEZE get that property out of your name!
You lose nothing, gain a lot and its cheap!!
And...you'll find yourself looking back over your shoulder a lot less frequently.
Q&A
DOES PLACING YOUR PROPERTY INTO A LAND TRUST VIOLATE THE LENDER'S DUE ON SALE CLAUSE?
Not as long as you are the only name beneficiary.
WHO SHOULD BE A TRUSTEE?
Anyone you trust: however, we strongly recommend it be a corporation that that it can get your property tied up in its Probate.
And if the corporation is not your own, in most states it would have to be a non-profit corporation acting for its members (we provide that).
For additional assets protection, we also suggest (ideally) using an out-of-state Corporation.
Derrick Ali,
We have briefly talked before, good to talk again.
I have read pro's and con's on Mr. Gatten's workshops. Not having attended any workshops I would not make a decision or give an opinion about his program until I knew first hand from hearing him speak.
What makes sense to one person might not to the other, your message here should be considered by those who choose to use this method. Your post was written from first hand knowledge and contains valid points.
The important thing is you and I are allowed to express our views so the community on this board can decide if what we say has value to the readers personally.
Thank you taking the time to express your views it gives us the opportunity to make a decision on our own.
John $Cash$ Locke
JOHN I too agree and Thank you deeply for the thought provoking rebuttals and difference in schools of tthought!
Your comments are well taken, much appreciated, and of benefit to all TCI members and/or Visitors I'm sure!
Much Success!
Derrick Ali