Land Trust Question
I'm a newbie doing my first few subject to deals. I take title by putting the deed into a land trust with me being the trustee and the person I'm taking the property subject to from being the beneficiary. Then I have them assign their beneficial interest to me. So now I'm both the trustee and the beneficiary. Some people told me this would create a dry trust. Could someone explain to me if that is true or tell me a better way of taking title? Thanks a whole lot.
I would never have myself as the trustee as that is public record. Have them deed it to a land trust with a third party as a trustee (friend or lawyer of your choosing)
[addsig]
there is nothing wrong with doing it that way, just dont record the beneficial rights transfer to your company untill a few days before closing (when you sell it). you see you can be trustee and your company can be beneficiary. its very hard if you have a freind as trustee and you need to get them to sign something, and have to get everyone toghether. but i do agree that your lawyer would make a great trustee, but they are even harder to get ahold of. lol.
P.S. Mr. Higdon is correct the trustee is public record but you can have your address as a p.o box, and your name as just the first initial of your first name and then your full last name. so that its not so obviouse who you really are.[ Edited by ZinOrganization on Date 12/15/2004 ]
...or you should be able to get a LPOA from your trustee so you can sign for them-just in case
You're right, it would be considered a dry trust.
Use 2 LLC's; One to be the trustee the other to be the beneficiary. You could also use yourself and an LLC (i.e. 2 separate entities), but I think you're better off with 2 llc's.
You might want to watch out for for you being benificial interest and trustee, this is an easily pierced land trust. Find someone else to be your trustee.
Best to you
Sire