Hello,
I’m a bit confused about needing to get the properties I own out of my name. I know this is essential but not sure whether I need to just put them into a trust or should I protect my assets through a corporation. Any advice is helpful and thanks in advance for your replies! :help
Branden
Hi Branden,
If you use a living trust, title is held by the trust and all transactions are public record. If you use a land trust, legal and equitable title is held by your trustee, you have complete control, and all transactions are legally unrecorded.
Do you want ownership or asset protection?
With ownership anyone with a shark attorney can attach the property for just about any reason. Ownership means you own an asset that is similar to walking around with a target on your back. What is the first thing the attorney does if someone wants to sue you? He checks to see if you own any property! If you do he he has the opportunity for some good billable hours. If you don’t he probably won’t take the case.
With asset protection you give the ownership to someone you trust (that you are not related to) and maintain control of the asset by being a beneficiary. My trust’s trustee is a non-profit corporation that is bonded, carries errors and omissions insurance, holds thousands of properties in trust and has a legal fiduciary responsibility to protect you and do only what the beneficiaries of the trust direct him to do (if he doesn’t he could go to jail). Because he can not conduct any business for the trust you (and the other beneficiaries) have all of the power of direction to conduct the business. No judge or even the IRS can sue the trustee or order him to do business for the trust (like terminate the trust and pay any creditors).
It’s very simple. You changed your asset from real property that is open to lawsuit to personal property that is protected in a trust with you having the total control of the owner (trustee) of the property.
If you take title with your LLC in the land trust you have that much more protection. I hope this helps.
ditto to Trustpro’s post. Land trusts are good way to hold title. Adding an LLC creates another layer of protection. Other entities can be used to plug other holes.