Does any one have any information as to how to create your own trusts, and more importantly, do you have to file it somewhere (like the IRS or with the state). I want to minimizes my expenses, so I am learning how to draw up my own trust, but must I have a bank, attorney, or trust company hold it for me?
So to summarize, Is it possible to create my own trust from start to finish without any assistance from an attorney, or a trust company, and if so where do I file papers for my trust.
You would be surprised how many attorneys make more money unraveling DIY trusts and estate plans than actually drafting correct ones. It’s going to take you YEARS and several thousand dollars to educate yourself to the point where you only have a basic understanding of the nuances involved. Even with an excellent education and the best reference materials, you will lack the experience of seeing how things actually work in court as well as the knowledge to integrate the trust into the rest of your plan. If you want to waste your time and money, do it yourself. If you want it done right, use a professional. If you can’t afford the professional, then you don’t need the trust.
I first want to say thank you to all that have replied to my question, and for those who will eventually respond.
Hi matshingdo001, I am flipping properties (wholesaling). So I just want to keep my transactions private, and avoid transfer taxes. I believe in this type of transaction an assignment contract is used. I want to be sure about this.
In addition, I want to also use the trust to hold title to rental properties, and personal properties that I will be acquiring.
Trusts may allow you to hide the transfer, but they won’t eliminate the transfer taxes. States are wise to the entity shell game and charge a transfer tax when the ownership of the entity that owns the property changes.
Land trusts provide no protection. They are still grantor trusts with all their benefits and pitfalls.
BLL thanks for your replies. You mentioned the fact that it will takes years to learn about trusts, and I partially agree. But my intension is to learn precisely about trusts and all documents related to doing a whole sale flip. As of now, I’m not interested in any other type of trust. I have listen to podcasts (Get Real Judson & Lynn Voss), CD’s from gurus, and other investors, and they all have said that creating your own trust is relatively simple. If you can shed some light on this, please do.
I’m located in New York City, do you know where would I register my trust (IRS, local courts) or is there a registration process to begin with?
It is easy. Just like using the Internet to diagnosis medical conditions is easy. That doesn’t mean you are doing it correctly or that what you have done is appropriate for your situation. You won’t die if something goes wrong, but you will have wasted time and money if your trust doesn’t work they way you need.
I don’t know if NYC requires registration of trusts. Most places don’t.