Posted by Randy McKee on May 30, 2001 at 15:48:46:
Hopefully I can help answer some of your questions.
Does Tennessee recognize a Land Trust?
There are all sorts of different trust scenarios out there and people are tagging names on all kinds. A land trust (or any other trust, for that matter) can be either revocable or irrevocable. The nature of the trust would be determined by the outcome the Settlor (the person who makes the trust) wishes to achieve. So, a short answer to your question: YES
How does a Revocable Living Trust differ from a Land Trust?
You could have a land trust that was either revocable or irrevocable. The real issue is if you want to have a revocable trust or an irrevocable trust.
Can the beneficial interest in a living trust be assigned?
Yes
It looked to me that there are at least twelve types of real estate transactions that are exempt from the transfer fee in Tennessee. Check out this web page for Tennessee code:
http://198.187.128.12/tennessee/lpext.dll?f=templates&fn=main-h.htm&2.0
It appears that you are considering a trust to circumvent this fee. If you do want more in-depth information on trusts and their uses and operation, let me know. I can probably answer most of your questions.
Best of Success
Revocable Living Trust vs. Land Trust in TN - Posted by Patrick
Posted by Patrick on May 29, 2001 at 20:28:07:
I am a brand new investor, having only recently attended the CRE Online convention. I established my TN corporation, and am set up for business.
While I haven’t closed any deals yet, I am actively working three that I think could be very profitable. My problem is that I have the understanding that TN only recognizes a Revocable Living Trust for non-taxable transfer of title. This brings up several questions I am hoping someone familiar with TN law and investing can address.
Does TN recognize the Land Trust? How does a Revocable Living Trust differ from a Land Trust? Can beneficial interest in a Living Trust be assigned? Any other advice on how I can circumvent transfer tax in TN?
One option I was thinking of (but unsure if this is just wishful thinking since I am so new at this) was to create a revocable living trust with myself as the trustee. If the beneficiary of the trust can’t be assigned (to me), then could I record an intent to purchase agreement on the house until I found the buyer? (I was thinking this would cloud the title and give me right to purchase at the same time??) Once the buyer was found, I would just assign purchase rights directly to my buyer or double close.
I am realy new at this, and unsure if I can even structure the deals in this way. I am extremely motivated to make this work somehow. I obviously don’t want to spend any money that I don’t have to (transfer tax in TN is .37 for every $100). Any help would be greatly appreciated.