Posted by Terry on February 07, 2006 at 22:22:09:
A friend of mine is the trustee
Land Trust HELP!!! - Posted by Terry
Posted by Terry on February 07, 2006 at 14:24:10:
Help I purchased a property in PA in a land trust the standard docs that are with the Ron legrande CD. I sold the property with no problem, now I just got a call from the title company and they have informed me that the check will be cut in the trust name. Now the trust is just on paper however I do have the notarized copy and such but it has never been recorded and I am not going to be able to cash the check. I have no idea what to do. I need the money for another settlement Thursday.
Re: Trust How it worked out - Posted by Terry
Posted by Terry on February 09, 2006 at 04:01:41:
Thanks to every one for your great advice. Just wanted to give you an up date. The title company would not budge so I was stuck with this check. My attorney did not get it (I know I need a new attorney) So ultimately I got a EIN number from the IRS, Went to the bank Opened an account and cashed the check. The lesson learned, Reading a book and listening to a tape is just not enough. You must make sure that you know what you are doing and find competent team of pros (attorney, title company etc.) to back you up
Re: Land Trust HELP!!! - Posted by Abe
Posted by Abe on February 08, 2006 at 15:43:43:
I found this answer on a real land trust board.
The worry I have is that if they’re cutting the check to the trust, the title must have been in the name of the trust instead of in the name of the trustee. If this is the case, the you are most fortunate to be getting a check at all (let alone title insurance) as you will not have had a true land trust all this time.
In a bona fide land trust, the title is held by the trustee, not the trust; and the deed would read: Bob and Mary Smith hereby grant the property to ABC Corporation as trustee for the Ajax Trust.
What a lot of the so-called “gurus” sell is the idea that the title should be in the name of the trust and should read: Bob and Mary Smith hereby grants the property the Ajax Trust, with ABC Corporation as trustee (or worse yet, with Fred Investor as trustee). The entity whose name appears frist in the vesting is the owner of the property, and if the trust’s name appears first (before the trustee’s), you then have a simple grantor’s trust leaving the property exposed to suits and claims against the trust. If the trustee’s name is shown first, then any suit would have to be against the trustee who remains immune to legal action except in cases of fraud or malfeasance in office.
In the future, be careful of this, as the wrong title vesting can blow you completely out of the water if your transaction is called into question by the courts or the IRS or any judgement creditor (ex-wife, business partner, etc.).
With your check cashing situation, just have the trustee sign the check over to you…the problem (if there is to be one) will be that the trustee does not have a bank account and neither does the trust (although they will likely not check on that). If that does become an impediment to cashing the check, just open a bank account in the name of the trust long enough to get the job done.
Re: Land Trust HELP!!! - Posted by JR
Posted by JR on February 08, 2006 at 05:15:27:
Have the title company just wire the funds to your account. Its done all the time. Have letter of direction for your trustee to a sign all documents.
Re: Land Trust HELP!!! - Posted by Jim FL
Posted by Jim FL on February 08, 2006 at 01:13:04:
Terry,
Did you have an attorney represent you at the close when you sold the house?
If so, just have them draft a letter of direction from the trustee to the title company, telling them where to wire the funds, and have that be your bank account.
or
Do so yourself, after asking the title company what they need to disburse the funds a different way.
I’m sure they will tell you.
Not as big a problem as you think, so relax, and just get it done.
Good luck,
Jim FL
Re: Land Trust HELP!!! - Posted by don
Posted by don on February 07, 2006 at 21:25:01:
or, simply have the trustee endorce the check to you.
Re: Land Trust HELP!!! - Posted by Ken
Posted by Ken on February 07, 2006 at 15:45:21:
Just sign your name on the back of the check and put a comma, and put “beneficiary”. Bring a copy of the trust agreement to the bank and you should have no problem. Terry, also, I’d like to talk to you about the Land Trust. I have done the same thing in PA and I have had many issues with this. I also work for a title company so maybe I can help you out.
Re: Land Trust HELP!!! - Posted by Terry
Posted by Terry on February 07, 2006 at 21:32:50:
Who or what is the trustee?