Posted by Rick, the Probate Guy on May 18, 2011 at 21:36:56:
…Who’s assets are you trying to protect? Yours or Mom’s?
I think AZ has a law about disclosing name of beneficial interest in a trust. Wouldn’t that defeat your purpose?
Save my mom’s assets - Posted by DavidGOR
Posted by DavidGOR on May 14, 2011 at 14:10:06:
First off, lets skip the “You’re irresponsible/crazy/etc…” lecture.
This is my first step to making everything right.
I have deeds in my name to 3 small free and clear SFRental
I manage that are rightfully my mom’s. She gets all the rent.
One of my SFRentals is worth half (50k) what I owe
that I’m letting go into foreclosure.
Knowing that my mom would want to split up her assets
among her 4 children, what entity structure would be best
to protect against a possible def-judgement? Family llc, FLP, trust?
-DavidGOR
Re: Save my mom’s assets - Posted by David Parker
Posted by David Parker on June 15, 2011 at 20:36:04:
The best approach would be an asset protection trust. You must use an attorney for this since it must be done correctly. You can put the other properties in the trust with your mom as trustee and you as beneficiary. A bank could come after it with a deficiecy judgment but it is highly unlikely. Use an attorney that does medicaid planning since these are the same trusts that protect assets from nursing home costs.
Maybe too late? - Posted by John Merchant
Posted by John Merchant on June 15, 2011 at 14:55:01:
Since it’s now after the fact of the foreclosure having been started I’m
thinking it’s likely too late for any conveyance by you to any person
to do any good.
The existence of the other props in your name or entity would be
quickly picked up by a title co and if the bank were to sue for defic J
they would also file lis pendens on your other props to lock them up.
I wouldn’t sweat it as these days the banks have their plates pretty
full with foreclosures and mostly it seems they’re content with just
getting back the RE into their REO stack.
I don’t think that you’re crazy… - Posted by Rick, the Probate Guy
Posted by Rick, the Probate Guy on May 15, 2011 at 17:28:49:
However, I see that people aren’t queing up to help you. This may be because your opening query tells people that you’re not open-minded and uncomfortable with being teased. Hey, this is an open forum and sometimes people post inappropriate things, even patently wrong responses, but we’re not mean-spirited.
You’ve asked a few specific legal question, with hardly any real facts, just that you wish for a solution. You don’t indicate what legal juristiction this matter is in, and you don’t even really indicate why the big concern.
You’re worried about a deficiency judgment against you? Perhaps the possibility of an adverse rulling is high, in your Mother’s case?
My advise:
-
take this to an attorney in your State qualified with asset protection practise background. It might be unneceesary to take any step(s) if the risk is low to nil.
-
Read other posts that get helpful responses. Yours says: “Don’t help me, I bite.” You don’t even sound appreciative of any (free) help you might get.
Try something more compelling, like a headline or a hook.
Re: I know I’ve messed up… - Posted by DavidGOR
Posted by DavidGOR on May 17, 2011 at 02:00:35:
Rick,
Thanks for your reply. I actually don’t mind if
I get teased or jabbed or told the ugly truth.
Its only that I usually
See that when someone gets themselves in a bad
Situation, sometimes the only replies spend too
Much time emphasizing that, that no more time or
Energy is given for a solution.
So I guess my bottom line question is, is there a
Best way to legally give my mom her assets to
Accomplish the following:
- prevent a def-judgement getting attached to her
proprties - the lender doesn’t charge with fraudulent transfer
- the assets are protected from any other lawsuits
- the assets can easily be given to her children w/o
being taxed
Just looking to be steared in the right
general direction so that I know at least
What to ask about.
The properties are in Az.
Re: I know I’ve messed up… - Posted by Colin Bochicchio
Posted by Colin Bochicchio on May 25, 2011 at 08:29:54:
Rick,
You are absolutely correct AZ has a disclosure law in that the beneficiaries of a trust need to be disclosed which is why investors shy away from land trusts in AZ. I forgot the legal statute though but David can google it if need be.
BTW my hats off to you Rick since I have seen your post for quite some time and I"m amazed at your knowledge in probate proceedings and how to work that area of investing
David: I actually emailed you some ideas and some information to help you yet I hope a good AZ attorney is involved in your dilemma and wish you the best of luck.