Who Should be the Beneficiary of a Land Trust
HTML-код
- Опубликовано: 13 окт 2024
- Being the beneficiary of a land trust does not offer you or your real estate any asset protection (Florida being the one notable exemption). Many real estate investors think once their property is transferred into a land trust if something happens with the property the investor is protected. Quite the contrary, if the land trust is sued, the land trust beneficiary is personally liable for any claims brought against the land trust. Further, if the land trust beneficiary is sued a creditor can take the land trust beneficial interest from the real estate investor.
To put it simply, you do not want to be the beneficiary of a land trust any longer than necessary. Once you set up your land trust and deed your real estate into the trust your next priority should be to set up a limited liability company (“LLC”) and assign your land trust beneficial interest to the LLC. Thus, your LLC becomes the beneficiary of the land trust and creates an asset protection shield around your property.
---------------------------------------------------------------------------------------------------------
SUBSCRIBE
www.youtube.co...
~~~~
FREE REAL ESTATE INVESTMENT STRATEGY SESSION
Claim Your FREE 45-minute Investment Strategy Session to receive business planning tips and asset protection. 👉 aba.link/crn
FREE TAX & ASSET PROTECTION WORKSHOP
Learn about Real Estate & Asset Protection from Clint Coons, Esq. and Toby Mathis, Esq. at our next all-day free Livestream 9 am to 4 pm PT. on Saturdays. Our attorneys and specialists will answer ALL questions: 👉 Save Your Seat: aba.link/hg9
~~~~
FINANCIAL PLANNING & RESOURCES
Download your free copy of Un-Tax Yourself eBook and discover the secret to real estate wealth is in the tax deductions. aba.link/defdf6
For financial strategies, podcasts, articles and details on upcoming workshops visit aba.link/clintaba
Here’s a little about me and my book Asset Protection for Real Estate Investors
aba.link/clintbio
~~~~
FOLLOW US:
Instagram: aba.link/insta...
Facebook: aba.link/facebook
Twitter: aba.link/twitter
LinkedIn: aba.link/linkedin
~~~~
CONTACT US
Phone: 800.706.4741
Email: info@andersonadvisors.com
Fax: 702.664.0545
ABOUT CLINT COONS
Clint Coons, Esq. is one of the founding partners of Anderson Law Group, Clint has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.
---------------------------------------------------------------------------------------------------------
The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
Claim Your FREE 45-minute Investment Strategy Session to receive business planning tips and asset protection. 👉 aba.link/crn
I did this and they did not offer anything other an an llc for each property... and a holding llc. nothing strategic about that.
Maybe you should have your senior advisors look at your videos. This is not how they advised me to set mine up.
Thanks for the breakdown on how to think about and do this.
You bet!
Simple and clear. Very helpful!!
Was led here from the sub2 video. I believe you had the seller as the Trustee and the buyer (me) as the beneficiary.
Is that correct?
Where does anonymity come in? Isnt my name is on the public record as the beneficiary of the trust, even after I assign it to an LLC, which also has my name on public record as Beneficiary?
The land trust is not a public record so you beneficial interest is not disclosed.
Clint, great explanation on who should be the beneficiary, but could you clarify if my local LLC should be the initial trustee
No but you could use a WY LLC as the trustee.
So the trust with the beneficial interests assigned to an LLC does not protect the house per se. The house is in the land trust. Its revocable so if someone sues, they can take control of the land trust and get the house, but the LLC will prevent you from being personally liable. Is that correct?
Yes
Clint once again fantastic info! Question about the trustee resignation, if I wanted to appoint my llc as the trustee would I still need to resign upon the transfer into the LT? Also upon resignation would the llc or appointed trustee need to file a trustee deed at the county? Thanks!
Yes you would resign and you would record a trustee deed naming your LLC the trustee.
Hi, where is the video on tenants and land trusts that you mention?
Blacks law dictionary states for the word "property" that it is the right of ownership .
🤔
Great Video! Can the grantor assign his beneficial interest to an LLC, even if the manager and/or member of such LLC is not the grantor himself? Also, would the property's insurance company have any issues with this type of transfer, since the grantor does not have a beneficial interest and is not a member of the LLC? Thank you!
You can assign your interest to any entity. The member/manager of the entity does not have an impact on the assignment but you may have tax or transfer tax issues depending on your state. The insurer should have the trust as the named insured with the LLC as the additional insured.
we need to make a video game like factorio where each legal entity has to fit together in a certain way, like if you assign the wrong beneficiary to your trust you can visually see why it's wrong and have to redo the "machine"
Very informative. At 3:56 you say the liability flows into the LLC when in fact the LLC is just a beneficiary. Why is that. Is that because indirectly the beneficiary (members) and the grantor are indeed the same person(s). Would the liability not exist if the beneficiary is a minor for example? Thx
The beneficiaries are liable for the obligations of the trust. With the exception of Florida, the liability will pass through the trust.
@@ClintCoons Got it! Thanks. I guess that is why Land Trusts dont offer protection. However for a standard Irrevocable Grantor Trust where the 3 parties are different, the liability will not pass through to beneficiary, and stays within the trust. Correct me if I am wrong. Thx
@@sred5856 Yes that is the general rule
If your not really exchanging any money per say then why would it be a taxable event. Seems like it muddying and making it more difficult than it needs to be by making yourself the trust beneficiary at first and how would the state even know if you were the beneficiary of the trust or not.
When the tax assessor sends you a 10k a year tax increase you’ll find out. It’s called a change of ownership. You can only lead a horse to water.
So this strategy explained by Clint protects against liabilities but does not serve as an anonymity protection. Where does the anonymity protection come in play?
The anonymity comes in when you use a nominee trustee to hold title to the property.
Thank you for producing these videos Clint very informative
Very welcome
hi Clint great videos ,thanks
I have. aquestion
will a wyoming llc can be a trustee and beneficiarie of all my land trust will this be a good move ?
No because the land trusts do not offer asset protection so essentially you end up with one LLC holding all of your real estate in the event of a lawsuit.
Good info. But the marker was very hard to see/follow.
Sorry about that
@@ClintCoons I used Whiteboards for years as a teacher. Red doesn't carry well. Your more recent videos look much better.
If property is already in a revocable living trust, can the llc be made the beneficiary to provide asset protection?
No you would need to take the properties out of your living trust and place them in LLCs.
Hi Clint,
I am buying a property without loan and my land trust will be the owner of the property. Can a title company transfer from the seller which is the 3rd party to my land trust straight?
like this
MR SELLER
hereby GRANT(s) to JOHN, as Trustee of The ABC Trust, dated February 03, 2020
A Ga LLC owns 10 Ga rental properties with properties managed by a Ga property management company and the Ga LLC is owned by a WY holding company. Would there be any issue with the properties being transferred to a FL land trust?
No but the land trust does not provide asset protection outside of Florida. If you want protection you should set up separate LLCs for each property.
@@ClintCoons ok thanks
Do i follow this method for "subject to"?
Just wondering, Instead of yourself directly as beneficiary, can you add a personal property trust as the initial beneficiary? Or would you add yourself first and then assign interest to Personal Property trust?
You would be the initial member of your land trust. Frankly I don't see the benefit of a PPT when using a land trust. Just assign your land trust to an LLC for asset protection.
Clint you're super!
So I can be the Grantor and the beneficiary?
Yes
Thank you.
Scenario:
I own multiple rentals and 1 homesteaded home in Texas and I want to hide my assets and protect them from anyone who might be sue happy.
Plan:. Set up a land trust, but is each property separate, set up the LLC and then assign my stuff over?
Also, can the wife be the trustee on the land trust? We're married in California under the private marriage option so only a subpoena could show were married, we've never filed taxes together and she didn't take my last name.
In Texas with the homestead laws, it is a bit more complicated. If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
Can the initial beneficiary be husband and wife as trustees of a living trust? Or do they have to be individuals?
Yes H&W are both trustee and beneficiaries.
so after my land trust agreement is stored into my filing cabinet at home where nobody can see it, with my name (grantor) as beneficiary before I assigned my beneficiary interest to my LLC. so the next day somebody slips and falls at my rental properties and then they sue the trust. so the judge then decides to pierce the land trust to find out who the beneficiary is.... does somebody show up at my front door and demands the land trust agreement that I hold in my filing cabinet at home? and then he found out it has my name on it before I assigned beneficial interest to my LLC? so why wouldn’t they just sue me personally then?
The Plaintiff will request through discovery a copy of the trust and discover the beneficiary, I.e., assignment of interest to the LLC. Could they name you - absolutely and this is why people should never represent themselves in a lawsuit.
So when "Assigning Interests", it won't result in any tax and the home owner can still get the Homestead Exempt tax saving?
If you assign your land trust to your own entity it will not result in tax liability.
Thanks, very helpful
I’m confused. Will I be the beneficiary of the trust or will the llc be the beneficiary of the trust?
The LLC is the ultimate beneficiary of a land trust.
@@ClintCoons thanks
Hello,
If I want to be Beneficiary of my Land Trust myself to control 100% everything by myself only and my wife and kids name listed in the land trust if something happens to me.
I like to set it up so the kids and my wife become beneficiaries upon the death, and they don't get slammed with a tax bill. What position i can give them?
Set up a living trust (estate plan) and make your family members beneficiaries of your living trust then place the land trust into the living trust.
What if I want them to be added to the land trust. Should I add them as a successor beneficiary or secondary Beneficiary? In his way I still 100% Percentage of Interest in the land trust?
@@andylee9973 Yes you could draft it that way. I would recommend against it given that a living trust has more protections built in for your beneficiaries.
That sounds complicated though
Great Info
Glad it was helpful!
Can me and wife and my kids be the beneficiary of my land trust?
Yes you can
The Business Guy
1 day ago
Can only me notarize the land trust without my wife notarizing, since she will be primary beneficiary and my kid's secondary beneficiary@@ClintCoons
@@andylee9973 Best to have all of the signatures notarized
so just to clarify, the Trustee is my LLC and Beneficiary is me (personal name)?
An LLC should be the beneficiary. The land trust does not offer asset protection so you will want the beneficiary interest held in a LLC.
@@ClintCoons them who signs the for the deed to be on title, WY LLC or my own LLC?
@@Tommy06289 The grantee does not sign the deed only the grantor. For example, if Bob is transferring property to Kevin as Trustee of the 124 Trust, on the deed the only person signing will be Bob.
I'd make Clint a trustee❤
Can U have a dog or cat and put it in your pets name as the beneficiary and still be a manager, member and receive benefits 😀🙏😇🤗😀
No but that is funny.
Every lawyer I have been to say they. Cant help me . because it been a 11 year mom been done, but the only real document I have is Father deed of trust. And my cousin quiclamdeed is had a different. Land number is not the same as Father deed what can I do?
isabel Loveme I’m assuming that English isn’t your first language (I mean no offense). I kindly advise you to find a translator who can descriptively write down your full situation, at which time you & the translator should visit a legal office to pursue further help. Hold onto that Deed Momma & don’t let anyone take it from you or convince you to sign anything you don’t fully understand. God bless.
So, do a business trust and avoid all this statutory nonsens?
Sometimes that is the correct approach.
:)
I'm disgusted.