Posted by Steve on June 25, 2004 at 11:34:12:
Thank you very much for your clear explanation.
Single or multiple land trusts - Posted by Steve
Posted by Steve on June 23, 2004 at 19:00:19:
I am purchasing 2 investment properties in Arizona and asked the title company to create 2 land trusts for these. They recommended putting both in a single land trust. Any opinions?
Re: Single or multiple land trusts - Posted by William Bronchick
Posted by William Bronchick on June 25, 2004 at 09:33:20:
Different trusts for each property is the recommended way of doing it.
Be aware that many title companies will tell you that AZ law requires the disclosure of beneficiaries on the deed. It is not mandatory, but the law says that if you don’t do so, either party to the transaction (grantor/grantee on the deed) has 2 years to cancel the transaction. If you own the property and transfer it to trust, you are both grantor and grantee and so there is no problem. If you are purchasing from another party, the title company will not insure the transaction without the disclosure, since the seller would have 2 years to void the transaction.
SOLUTION –> Use a “dummy” entity in the middle to take title (such as an LLC), then simultaneously transfer again to the land trust. That way, the second transaction cannot be voided (since the grantor and grantee will be within your control).
Re: Single or multiple land trusts - Posted by Bob
Posted by Bob on July 09, 2004 at 16:18:31:
Instead of 2 deeds, why not have a personal property trust as beneficiary?