Posted by blogger on August 29, 2006 at 22:55:47:
You need to start with a good layman’s book on trusts, suggest NOLO Press for a start.
Land trust trustee set-up - Posted by Shaun
Posted by Shaun on August 29, 2006 at 18:58:45:
I have heard a lot about land trust and they sound like a great cloaking device for my assets, however I have a few questions that I cannot find the answers to within various postings and forums. these questions are:
I have heard that it is a terrible Idea to have yourself be both a trustee and a benificiary of a Land trust. I understand that making yourself the trustee defeats the purpose of disguising your assets because your name is shown on the title of the property which everyone can get access to. My question is, if there is another purpose behind the Land trust (for whatever reason) beyond personal asset “cloaking” what is the problem of being both trustee and benificary. Also, and more importantly, if my Company is the benificary and I am the trustee how does that affect the issue? On title my name is seen. Would they then check my background and see my company… and if they do that would they find that it was a benificary of said trust? Is there some sort of peircable relation to me as trustee and my company as benificiary… would the courts treat my company as just an extension of me?
Also in taking title I understand that the trustee takes title… but I read some jumble about the difference of “trustee taking title for ABC trust” or “ABC trust taking title with so-and-so as trustee.” What is the difference?
Lastly, in doing a land trust how can you assure control if you are not the trustee? how can you assure that the trustee will do what you want for the property? and why would anyone want to be a trustee? If a tennant wanted to sue the owner of the property he would serve the trustee on title… so why be trustee? Do the papers served pass through the trustee to the benificaries how do the attourneys determine if it’s monetarily worth the effort.
I believe that this uncertainty is why you want a land trust, right? Or what happens when a land trust itself is sued?
Thank you for your time and responses.
Shaun
Re: Land trust trustee set-up - Posted by colvegas
Posted by colvegas on September 03, 2006 at 01:24:36:
Shaun,
As to your first question it is not a good idea at all to be the trustee and beneficiary it is a issue of merger and it can invalidate the trust making it what we call a dry or abusive trust. Iam not giving legal advice but know this from my research since I work with trusts.
The trust structure is best done with a 3rd party trustee although you can use any trustee you wish…
I would not use my company as the trustee since then once they associate you with that company they will ascertain you are the beneficiary. Your company if you were the trustee which is not advisable would show the title vesting on the deed…
As to the legal court issue get with an good R/E attorney who understand how trusts are structured.
If you do use an Illinios title holding trusts these are beneficiary directed revocable trust entities so you have the power of direction to the trustee whom must act on your behalf and if there are other beneficiaries their vote is counted as well in directing the trustee…
Shawn in the title vesting it is vitally important in how the trustee takes title to the given property.
Title goes to the trustee not the trust referred to as the doctrine of equitable conversion thus the trustee is taking both the legal and equitable title to the property which is why beneficial intereset is the trust is regarded as personalty not realty in 48/50 states…
NO legal advice is intended and Shawn hope I helped.
You can email me if I can clear up any other items…Trusts do work just make sure they are structured correctly…