i am wanting to put my home in a NARS land trust-----do i need to be concerned about the trustee—they are a non-profit—though only bonded for 25K—what if the trustee gets sued is my property in jepordy. Any info would be apreciated.
thanks in advance
Hi Lucy,
All my properties are kept in a NARS land trust and the non-profit trustee is about as safe as you can get. The agreement sets forth the rights and obligations of the parties. All of the rights of ownership are retained by the beneficiary(ies) The trustee does not manage the property or become responsible for its operation. The trustee only deals with the title upon the written direction of the beneficiary(ies). Beneficiaries control and direct the trustee in all matters relative to title and disposition of the trust property.
As a corporate professional entity with unlimited life, its assets cannot end up in probate or become subject to unnecessary income tax or delay in disposition. In fact, there are severe drawbacks to using any entity other than a third-party, non-profit, corporate trustee. Good luck. You won’t be sorry.
Da Wiz
thanks so much for your reply. So i do not need to be concerned with them only being bonded for 25K…? Also if You would not mind i poste anoter ? in the commercial property forum if You have time. You seem knowledgable and very generous with it----i enjoyed many of your replies to other peoples queries. thanks again.
That’s the maximum bond allowed. What’s your concern? Try appointing a “trusted friend” as a trustee like others seem to recommend and you’ll really be placing your property at risk.
NAMING A FRIEND AS TRUSTEE
Risky and quite probable failure to honor privacy and anonymity, especially under threat of legal action.
An individual trustee’s failure to charge a fee would not support the land trust’s validity in court. The attempt to charge a fee would not be seen as adequate unless the party were a bonded entity.
An individual trustee’s death would embroil the property in his/her own bankruptcy, Probate and other personal legal actions.
An individual would most likely never be bondable as a trustee and would likely not have the resources to provide a completely separate, free and bonded collection and bill-paying service.
An individual would not be seen by the courts as a standard trustee, charging fees “commensurate with industry standards”: therefore severely impairing the integrity and structure of the land trust.
One’s own personal appointment would not be seen by a 2nd or 3rd co-beneficiary as a mutually trustworthy holding entity. Such likely bias obviously would not be in the best interests of any of the co-beneficiaries.
Da Wiz
Da Wiz—like i said i am new to all of this —just wanting to be informed. If i am trusting someone with my property worth say 4ooK and they are bonded for much less-----seemed questionable------i do appreciate all your time and info. I think it is sinking in! thanks again. taylor
When creating a simple single beneficiary land trust for your own home for just the purpose of shielding ownership from public view, you can legally name just about any one or any entity he/she would choose to function
as a trustee. However, when more than one beneficiary (i.e., a trust involving other parties with disparate
interests and objectives) is involved, there are severe drawbacks to using any entity other than a third-party, non-profit, corporate trustee.
The last thing you have to worry about is your trustee if it’s the one I use. They are a professional non-profit entity specifically and solely engaged in the holding of titles in land trusts. They are fully staffed by full-time knowledgeable professionals. They are recognized as a bona fide holding institution by any court that would/might be challenging the integrity and structure of the land trust or holding to adherence to statute and or standards in states where land trusts per se are specifically legislated and authorized. Over 4,000 of our type of land trusts have been written since they were developed in 1984 and not one has ever been broken – not one.
Da Wiz
What is the best reading material or resource regarding NARS Land Trust? I am definitely interest.
Here is a link to a free ebook by its creator:
http://site.landtrust.net/NoDownNoNewLoanPDF.html
Da Wiz
Thank you mtnwizard