Turst Document
I have seen alot lately about creating a trust before the sale and then having the seller deed the house to the trust, which you are the beneficiary of. How does one go about making that trust? I have the alternative real estate financing course and there is a sample trust in there but it has to do with transferring beneficial interest at closing and thats not what I want to do.
First you have to create a Trust.
If this is your 1st time, I recommend you use your RE Attorney to make sure you do everything correctly.
But the steps are relatively simple.
You draw up the Trust document, in which the Grantor (the owner of the property) through a so-called Warranty Deed to Trustee transfers ownership of the real property to the Trust.
Just make sure that you are not the Grantor, Trustee and beneficial owner, as that invalidates the Trust.
The beneficiary now "owns" the Trust, i.e. all that has been deeded into the Trust.
Subsequently there are several alternatives when the beneficiary wants to dispose of the property.
He can instruct the Trustee to sell it.
Or alternatively, he can sell his "beneficial ownership" in the Trust.
The latter is often used, as it does not require a Warranty Deed.
This is where the Assignment of Beneficial Ownership document is used.
But again, consult with your RE Attorney, as to Trust regulations in your State, the proper wording of the documents and when to file what documents.
Hope this gets you off to a good start.
[addsig]
Yes that helps, thanks.