what difference does it make if i put a house in a family trust, or if i put it in a land trust? which one is better, and why?
thanks.
what are you trying to accomplish?
a family trust may be great for estate planning.
a land trust may be great for hiding the asset depending on how you set the trust up. Check out our patron “Da wiz” he would be better at showing you the advantages of the land trust.
and mcwagner is quite knowelegeable about Taxes, so you might ask him about the estate planning part. he also is an expert on the use of the LLC. it all depends on what you want to accomplish.
What is the difference between a family trust and a land trust? How are they different in purpose? what situations are they best used for?
My home is on my name, so to protect it whats the best thing to do? Put it in a trust (which one?) and make my LLC the beneficiary?
If I buy houses for flipping, or for rental income, should I do the same?
Thanks.
Put your home in a land trust and take title in your LLC. To hold the property, in my opinion, the land trust provides the most flexibility and the most protection.
Da Wiz
n604,
A family trust can hold assets of all kinds like cars, boats, airplanes, coin collections, real estate, etc …
A Land trust can only hold real estate.
a trust in general is used ofr estate planning purposes.
The reason you might use a land trust is two-fold. It would depend on where you live. some states are very familiar with the land trust like Illonois. I believe the standard form of real estate conveyance is via the Land Trust. It provides certain benefits like a certain level of privacy/anonymimity. you can control the property without being on title. Depending on how the trust is set up, it could be used as a deterrant against judgement creditors.
I agree with mtnwizard. Put it in a “land trust” use a third party nonprofit as a trustee and have 2 non-related parties as beneficiaries, and “lien” it up to protect your equity in the property (friendly lien concept).