And that makes people LESS likely to sue?
Also, you said it is a big hassle to put properties in / out of trusts. I was under the impression you just sign a few documents and that’s that. What’s the hassle in setting up a trust?
And that makes people LESS likely to sue?
well, yes. it’s an LLC. they cannot obtain ownership of the company itself, so the best they can get is a charging order that’s useless to them. the property is encumbered by a mortgage, so there’s no assets there to gain. your personal assets are protected because the property in question is inside the LLC. yep, IMO makes it less likely that you’re gonna get sued - even if they can see that you own the company.
contrast that with owning the property yourself: you have a house, rental property, two cars, savings account, 401(k), and a paying job. can you spell T-A-R-G-E-T?
My trustee is my atty. having him do anything is a hassle. he doesn’t return phone calls. he charges to complete documents. he charges if he, as trustee, has to attend a closing. charges for faxes. hell, he charges for everything.
As the manager of the LLC, I can just go sign documents on my own and don’t have to involve him.
Okay, let’s say hypothetically that I was operating not alone, but with a partner. If my partner were the trustee, or maybe if I made a close relative a trustee, I could eliminate the hassles created by needing a trustee. At that point, is a trust a better way to do this?
wouldn’t recommend it.
USING A FRIEND OR RELATIVE 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
Please don’t steal my thread to ask your question, start your own. But since you hopped in, let me give it a crack. You bought property, likely signed for it with your name. This is you personally guaranteeing the loan. Now you cannot pay. How can you make it so that the bank cannot come after you for something you signed that promised them they could? Nothing… You bought a house, you cannot make payments now (and how on earth can you know that it will be specifically three years until it goes back to the purchase price?), so the bank will foreclose. You want a way to get a house, not pay payments, and still be able to keep the property? How would the bank be able to operate if people could keep houses they weren’t paying for? Anyways please go start this in your own thread as this isn’t what this one is about.
They deleted their post. That wasn’t directed at you marc, someone posted that their investment property is now worth 100K less than when they bought it and wanted to protect themselves from foreclosure. Your help has been greatly appreciated! Someone just posted a barely relevant new topic in the middle of this thread.
For all Members:
While “hijacking threads” is not expressly forbidden in the Foum Rules, it is considered EXTREMELY rude. The following other behavior reflects badly upon the posters:
(1) TYPING IN ALL CAPITAL LETTERS - this is considered SHOUTING
(2) typing in all small letters
(3) Ignoring all punctuation marks so as to make a paragraph into a single, incomprehensible sentence
(4) Horrendous spelling and/or grammar. You don’t have to be an English major but try to generate readable posts
(4) Not proofreading your posts so as to catch the more glaring issues.
Thanx,
Keith
Moderator
I deleted my buttinsky post.