Real estate investors are always looking for ways to protect themselves from frivolous law suits. We want to protect ourselves from losing money or personal assets. One of the tools that we can benefit from is the use of the land trust. Trusts can give us an edge in protecting ourselves in a few ways. Trusts have been established to help with Estate Planning.
Parts of a land trust:
1. The land trust consists of creating a name. Many times we can list it as the address of the property.
2. Trustee: this is the contact person that one would call if they had any questions about the trust.
3. Beneficiary: This is the individual or business that owns the trust.
Hiding the owner of the property:
Banks that hold notes:
The ownership of property can change from an individuals name to the name of the trust. This is recorded in the county records and can allow searching sources like banks that hold the mortgage or others not to know for sure who holds title. This could allow an investor to take over payments of a previous owner, and then place ownership of the property into a trust. The bank in turn does not know who ideally owns the property because the paperwork showing the beneficiary does not have to be recorded at the county.
Accident Attorneys searching for sources to sue:
If an investor has placed their rental property in the name of a trust it keeps away those that could damage them wrongfully. A tenant that claims a wrongful suit of injury could retain the help of an accident attorney. The accident attorney though would need to see legally who owns the property. After investigation at the county it is clear that there are no legal records showing the beneficiary or owner of the trust. This can cause attorneys to move on to other cases that are more legitimate.
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