MYTH : You cannot do a Short Sale using a LT .
TRUTH : False . You can and I have and there are many advantages to using a LT for this type of transaction .
MYTH : Is it true that I must record my trust agreement to make it valid ?
TRUTH : No , and 99 % of the time you would not want to record your trust agreement . However , there is that 1 % reason that you might want to record . Contact me if you want to know why .
MYTH : My attorney says land trusts are illegal in my state .
MYTH : If I use my LLC as the beneficiary of a land trust , I must register the LLC in the state where the property ( held inside the land trust ) is located .
TRUTH : Wrong ! Many accountants will tell you this , but they are incorrect . The beneficiary of the land trust is not " doing business " in the state where the property is located ... the land trust is ... and the land trust is not required to register .
Note : California has a law that says if you transfer more than 49 % of ANY entity that owns property in CA or is the beneficiary of a trust that owns property in CA , they have the right to tax you .
TRUTH : This is probably not true . Almost all states recognize the validity of a LT or a similar type entity ( Title Holding Trust , Common Law Trust , etc .). My experience is that a vast majority of lawyers do not understand land trusts and therefore do not recommend them . Too bad for their clients ... they are missing out on over 50 reasons to use a land trust ( I have written a booklet called , “ Reasons to Use a Land Trust ” and will deliver it to you for free , if you text the word reasons to 2062032005 .
MYTH : Land trusts are expensive to set up and maintain .
TRUTH : Not true . If you follow my advice to put each of your properties into a separate land trust and you hire an attorney to do this for you , it WILL get expensive . But you do not need to do this . You can learn how to set up and administer your own land trustssimilartype entity ( as many as you need / want ).
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