Avoid Having A Land Trust Deemed 'DRY'!

Gotthis from amember who PM'd me: Quote:

On 2003-11-19 12:07, toeneetee4 wrote: Derrick on your post about Land Trust's you mentioned not coming up DRY.... I've never heard this term before could you elaborate for me so hopefully in the future i don't make the same mistake? Right now i put myself as Trustee, CO. as beneficiary, only after I've had the seller sign the assignment of beneficial interest paper.

Tone: Is this a Subj-2 deals? If so the lender can call the loan DUE (DOS violation) unless the Seller has at least 10% beneficial interest remaining inthe Trust. 'Dry' is a term that is used by a judge to determine the invalidity of a trust having no real purpose than to hide true ownership. A Trustis a VALID Trust as long asALL ofit's components hold up under sctrutiny of trust formation laws of the State where the Trust is declared. You need to have: A Trustee A Beneficiary and An Asset deeded to theTrustee for preservation on behalf of the Beneficiary(s) The Trust cannot be 'busted' or deemed 'dry' if it is set up correctly...example being: You the investor can be the Trustee(better to have a 3rdPty) the Owner whom sells to you can remain astheONLY listed Beneficiary and still forfeit the remaing % of their BI to YOU upon pay off ofthe existing mortgage and/or equity, etc. a Trust having 2 or more non-related member co-beneficiaries can successfully withstand scrutiny of a judge and/or aggressive atty looking to un-sheild and grab up all the goodies held by theTrust. As my mentor BILL GATTEN says: The Trustee can confidently tell theAtty to GO POUND SALT!! When they attempt to disolve your Trust Agreement. Check the with your own RE/TRUST Atty to be clear on how to properly arrange your future transactions! Let me know if you need a good referral as well! Best of good fortune to you! Derrick [ Edited by DerrickAli on Date 11/19/2003 ]