Image by Fathromi Ramdlon from Pixabay
It is not illegal to hold title to your real estate in a Land Trust to conceal the ownership ( I call this being private about your business ).
Randy Hughes
MYTH : Land Trusts must have incorporation papers and the State notified
TRUTH : Wrong again ! Land Trusts are not registered like corporations and LLC ' s on a statebystate basis ( in fact , they are not registered at all ... anywhere !). This is one of the many reasons to start your estate planning with a Land Trust for each property you buy .
MYTH : I was told that my Land Trust must open an account at a local bank
TRUTH : Not true . Since Land Trusts are " passthrough " entities in the eyes of the IRS you do not need a separate bank account for each Land Trust you form . You can set up an account , but it is not required . If you set up an account for your Land Trust , you will not have a tax ID number to use so you will have to use your own social security number ( or , if your LLC is the beneficiary you might use the tax ID # for your LLC ).
MYTH : It is illegal to hide the ownership of property
TRUTH : I love this one . WRONG ! It is not illegal to hold title to your real estate in a Land Trust to conceal the ownership ( I call this being private about your business ). The past president of the United States , Barack Obama , owns his home in Chicago , IL in a Land Trust with his attorney serving as the trustee . If it is good enough for a president , it should be good enough for you !
MYTH : Can I buy the Beneficial Interest in a LT without buying Title Insurance
TRUTH : Yes , you can , but I would not suggest doing this . I would always get a title policy and have the proper " search " done prior to transferring any funds . You want to make sure that the Trustee has clear title and there are no unknown liens or judgments against the property . You should also obtain a copy of the trust agreement and make sure the Trustee acknowledges EVERYTHING !
This is certainly not a complete list of misconceptions about Land Trusts , but is enough to digest for now . I will write more on this subject in future articles . Feel free to contact me if you have any specific questions . My number is : 217 3551281 . Or ,
randy @ mrlandtrust . net
ABOUT RANDY HUGHES Mr . Land Trust
I encourage you to learn more by going to my FREE online training at
www . landtrustwebinar . com / 411 and text “ reasons ” to 206203 2005 for my free booklet , Reasons to Use a Land Trust . You can also reach me the oldfashioned way by calling me at 2173551281 . ( I actually answer my own phone unlike most other businesses in America today !)
94