Wiz, (or anyone else) I keep hearing about this whole Land Trust protection thing, but I know almost none of the details regarding it. Would you mind giving a brief, step-by-step explanation how to do this on paper? Thanks.
Robert
A Land Trust has been in use throughout the United States for more than 100 years. It converts ownership of real property to ownership of personalty, even though such ownership is characterized by the IRS for income tax purposes as ownership in real estate. The primary purpose of the trust is to provide its beneficiaries a practical, economical (and anonymous) alternative form of real estate ownership and use.
A land trust is easy to establish and inexpensive to maintain. It is a method of real estate ownership whereby a trustee holds legal title to real estate, while the trust’s beneficiary(s) have complete control over its management and the power to dispose of the property.
In recent years the land trust has become popular as it has evolved into an innovative yet simple arrangement, method and/or system whereby a real estate investor can acquire or dispose of real estate ownership without the necessity of new financing or down payment requirements.
A co-beneficiary owned Trust property is very solidly protected and shielded from actions associated with any party’s past bankruptcy; creditor claims and civil judgments; litigation in marital dissolution; probate actions, even state and federal income tax liens.
Da Wiz
Thanks, Dr. Gary. Will look over the site you mentioned to me via PM.
R
Gary,
is limited partnership better than landtrust ?
if not, why do you think so ?
A trust affords more privacy and better asset protection. A trust can be a very private method to own and administer assets. Because the trust agreement is normally not a matter of public record, the names of the trustor, the trustee and the beneficiaries and the assets held by the trustee are not open to public inspection.
Da Wiz
at what number of houses should I start the think about land trusts or LLP’s…two, three, four???