corporation. And, 8.0181 et seq. of the Virginia Partition
Statute verifies that the remedy of partition cannot be
used by one beneficiary against another. Furthermore,
there is no transfer notification requirement nor a
requirement to disclose the beneficiary (as some states
have).
Note: Virginia Land Trust Law (Virginia Code 5558.1)
requires an instate Trustee. Therefore, if you are forming
a Virginia Land Trust to hold title to property in any other
state, you need to have a Virginia Trustee. I do not like
this requirement because although I prefer my trustees
located in the same state as where I am forming my trust,
it is nice to have the option to use someone from another
state.
So, how do you form an outofstate trust to hold title
to the property in your state? And, where can you find a
trustee from another state to serve as your trustee? These
are good questions for the concerned real estate investor
who wants to protect his/her hardearned assets. You will
find the answers to these and many more of your
questions at: www.landtrustsmadesimple.com
I encourage you to learn more by going to my FREE
online training at: www.landtrustwebinar.com/411 and
text “reasons” to 2062032005 for my free booklet,
“Reasons to Use a Land Trust.” You can also reach me
the old fashion way by calling me at 8666967347 (I
actually answer my own phone unlike most other
businesses in America today).
O
ur modern world is fraught with dangers
and potential liabilities for the real estate
investor who just wants to work hard and
build an estate for his/her family. Learning
how to conceal assets and appear poor should be the
goal of all hardworking entrepreneurs. America’s legal
system has run amok and if you do not concern yourself
with asset protection you are doomed to fall prey to the
21st century terrorist…the contingency fee lawyer (and
his/her client).
An interesting and not well understood fact about
Land Trusts is that they do not have to be formed in the
same state where the property is located (or where the
beneficiary resides). Like the founding fathers intended,
Land Trusts have been left to each state to develop how
to rule on the use of them. There is no Federal Land
Trust law. Only a few states have a Land Trust Statute
(most have only case law supporting the use of Land
Trusts from other states), but all states recognize some
form of title holding trust. In this article, I will discuss
the Virginia Land Trust Statute and its unique benefits to
the real estate investor.
The English Statute of Uses was repealed by the
Virginia General Assembly in 1792, thereby eliminating
one of the hurdles to land trust validity. But in 1819 the
legislature enacted a limited Statute of Uses, which
applies to declarations of trust in which the trustee has
no duties whatsoever. Since Land Trusts are usually
drafted requiring the Trustee to do something, even if
only accepting property and deeding it out, this is all it
takes to get around the limited Statute of Uses.
Land Trusts in Virginia work exactly like those in
Florida and Illinois. 5517.1 of the Code of Virginia
spells out the modernday interpretations which
incorporates all these attributes. 5877 (2) of the
Virginia Code confirms that a trust is not taxed as a
"An interesting and not well understood fact about
Land Trusts is that they do not have to be formed in
the same state where the property is located (or
where the beneficiary resides)." Randy Hughes
Randy Hughes,
aka, Mr. Land Trust™
It is difficult to convey all of
the benefits of using a Land
Trust in a short article like this.
I have been using (and writing
about) Land Trusts for the last
40 years. If you would like to learn more about how to
create your own Land Trusts, for FREE training go to:
www.landtrustwebinar .com/411 or email me at:
[email protected] for my FREE booklet, “50
Reasons to Use a Land Trust” or contact me the old
fashioned way by calling 8666967347 (I actually answer
my own phone!) Randy Hughes, aka, Mr. Land Trust™
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