Posted by Richard on February 12, 2005 at 11:52:42:
use landtrust to hold title and have living trust as benificary,yes, use both, just my opion,consult your attorney
better to use land trust or living trust? - Posted by k
Posted by k on February 12, 2005 at 10:31:03:
i’m purchasing a new house in a few months
and i’d like to know if i should use a land trust or living turst or both?
A Land Trust is a Living Trust - Posted by LeasePurchase
Posted by LeasePurchase on February 12, 2005 at 23:07:51:
A Land Trust is a Revocable Living Trust. The difference between a Land Trust and what most people refer to as a Living Trust is with regard to the Trustee and the Beneficiaries.
In a Land Trust a 3rd party Trustee is selected and is granted, Bare, Equitable and Legal Title to the property. You, legally no longer own the property. The Trustee of a Title Holding Land Trust has no Power of Direction, All the Power of Direction lies completely with the Beneficiaries.
A Standard Revocable (A/B Family) Trust is a Beneficiary AND Trustee directed trust where the Trustee is also and usually one of the Beneficiaries. For that reason there is no “asset protection” in a standard Living (A/B) Trust. The only real purpose of this type of Living Trust is for that of Probate Avoidance.
A PROPERLY constructed (Illinois Type) Title Holding Land Trust does indeed provide a Safe and Legal Shield of ones Real Property. It will effectively, safely and legally hide the property from prying eyes of creditors and those wishing to attach or seize your Real Assets.
I advise my clients to at least set up a Family A/B Living Trust and a Title Holding Land Trust. The best beneficiary of a THLT is a corporate entity such as an LLC. A THLT offers little asset protection IF the beneficiaries are related either by blood or marriage. An LLC allows for its members to be related and therefore offers ?non-partitionability? for the purpose of satisfying a creditor judgment. It?s kind of like wearing a belt and suspenders.
Re: better to use land trust or living trust? - Posted by gerald(tx)
Posted by gerald(tx) on February 12, 2005 at 13:33:51:
Better for what purpose? The answer could be neither.
If this is your homestead, there is very little need for privacy and using a land trust.
Unless you are approaching retirement age, have deep pockets, a sizable estate that you wish to protect by avoiding the probate process, there’s little point in putting your home in a living trust.
In my opinion, most of the new investors on this board have been oversold on the need for trusts. They have their place, and as a veteran I occasionally use them, but only when situations dictate their suitability.
Gerald