Probate:
In investing in Real Estate we realize that we take on liability. It is smart to use the right legal tools to protect our personal assets from liability issues. More people unfortunately are more sue happy if they feel they can benefit from it. We discussed today the benefits of putting property that is owned in trusts or the more proper term is a land trust. Land trusts allow us to not be as vulnerable to the public seeing what we own. We discussed several reasons for titling property in land trusts.
Privacy:
Anyone with an internet connection can potentially look at public records at the county. By putting properties in different trust names keeps your ownership private.
Protection from liens:
When others want to attach a lien to an individual property it is easy to do unless the property is title in a trust.
Discouraging Litigation:
Some people tend to sue those that appear to have money. Attorneys are likely to take cases of those that are an easy target. By placing property in a land trusts attorneys are more likely to move to an easier target since it is not public knowledge on who owns the property.
Making Loans “Assumable”:
The seller transfers title into a land trust, with himself as beneficiary. After the fact, he transfers his beneficial interest to you. This does not come to the attention of the lender because it is not recorded anywhere in public records.
Summary:
The use of land trusts allow us to have more privacy and to use creativity to keep law suits at bay.
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