How does one go about actually writing up a land trust?
I’ve seen numerous (VERY VAGUE) forms online for free. Along with some very comprehensive forms that are more “fill in the blank” in type online also. Whats the best route to take in actually creating the land trust. After speaking with a friend of mine who’s (a real estate attorney) he informed me that in NYS the trust DOES NOT need to be recorded (which i knew but figured i’d keep my mouth shut) but a document called a “declaration of trust” DOES in order to declare the trust an actual entity.
I don’t want to go and create a trust INCORRECTLY, but it makes my stomach turn the amount of money some of these attornies will charge to create one. I’m looking for one to hold myself as trustee and my LLC as beneficiary. if anyone has ANY leads please HELP!!!
I had an atty do the first one ($300 I think) to make sure I was in agreement with state laws. after that it was fill-in-the-blank.
$300 isn’t bad at all. I was under the impression I was looking at a $2000+ cost to have it drawn up (too much time on the internet :eyecrazy:). Well if thats the case should I just go all the way and tie an LLC into the trust from the beginning or should I just put my name on it. If so, should I list myself as the beneficiary or trustee? Kinda confused on how to initiate and execute the process on my very first property.
if you’re the beneficiary, then you haven’t accomplished anything!
Friendly 3rd party or LLC should be bene. 3rd party trustee (this will cost you like $200 plus $25 annually) is recommended. some people recommend your atty at trustee for that client confidentiality thing. others recommend a neutral trustee.
Creating a land trust is no big thing…and as I mentioned in another post, anyone can be the trustee if they’re not planning to hold the property for an extended period of time (e.g., a year or less …“One needn’t buy a parachute just to jump off a curb”). If, on the other hand, you are holding for a long time, or involving others as beneficiaries or remainder agents, and want to be assured of the trust withstanding mortar attacks (e.g., by the public, the courts, the IRS, a plaintiff’s attorney, you p.o.'ed ex-brother-in-law, etc), then it is best to carefully model the trust after a true Illinois [type] land trust (i.e., authorized third party corporate trustee who customarily holds title to real estate for others and who charges a reasonable fee; no paid property management or collections; no merger of title; no semblance of a corporation, partnership, joint venture, association, amalgamation, equitable mortgage, business trust, lease option or home purchase.
But do note that recoding a deed in New York is, in general, a pain in the…aspirin tablet. And yes, you will have to record a Certification of Trust and various other ancillary transfer documents that are stupid and not required in other states. Visit the recorder’s office first and get the ancillary documents you will need, then put your trust and deed together.
Bill Gatten