I cannot transfer my rental property to a land trust in the state of TN. They do not recognize land trusts there. Would it be possible to transfer to a living trust, assign a trustee and make the LLC beneficiary? Does a living trust have to be a recorded document?
I have read many posts that suggest doing the land trust and making the LLC beneficary. I am assuming that the land trust is not a recorded document and making the LLC beneficiary is simply a strategy to keep your own name off of the public record?
So far since my property is in Tenn. I have not come up with a scenario to get it into my LLC without triggering the DOS clause. Any ideas? ???
Mike,
Hold on a minute you certainly can vest your title under federal law into a inter vivos trust in TN.
It is legal to setup a land trust in TN and you still get the secrecy and asset shielding which is not negatively impacted by the state view on land trusts…
The only stipulation is that TN does not see the beneficial interest in the trust as personalty but as realty so you lose some asset protection features but you still gain many others. If Iam not mistaken that asset protection portion would not hold up under a state lien or state or local creditor or charging order. I can check into that since that is an interesting point. You are vesting your title into a land trust for asset protection and estate planning purposes…
You need to understand the verbage or terminolgoy used a living trust is the family funded trust that most attorneys who specialize in estate planning and such can help you with but a land trust is a different type trust. Land trust are used for real estate and real estate related assets only.
A DOS clause can still be avoided by using a tittle holding land trust since that stipulation deals with federal law not local or TN state law under the Garn St Germain ACT of 1982 and remember federal law supercedes state law in this area…
My suggestion is to use the LLC entity as the beneficiary in the land trust so at least you have the corporate veil of some sort of protection and the other land trust benefits to work with.
Mike give me a call to discuss since I think you are getting blown away by TN state statue. My info is in my signature file.