I love this stuff! When I was a kid I thought I wanted to study law. Then I got turned off by the litigation aspect. But if I were doing this stuff, helping people protect against ambulance chasers, I think it's a profession I could be proud of.
I live by the theory, buy where you can rent, rent where you want to live. So buy all properties and have say a manager managed single member Wyoming LLC own them, then pay rent in whichever one you want to live in, and rent the others. You can freely live in anyone you want. The Wyoming LLC gives you a salary, set up a property management company that is owned by that LLC, lease it to that company or have it handle property management to accept rent payments for all properties, then you pay rent to that company, then that company pays the Wyoming LLC. Do the same thing with vehicles, you won't have to rent the vehicle, it is a company vehicle assigned to you, the company pays insurance, maintenance and fuel.
In the 2nd LLC you can book the house as a retirement element .so they cannot claim it for many yrs till you retire...most company owners never truly retire..so they cannot touch the house..unless you decide to flip it
Amazing legal stuff in your channel Clint! Thanks a lot. As an spanish legal advisor, I like to compare the options of US legal body against the spanish one...AND YOU ALWAYS WIN! To begin with, in Spain there are no trusts and trust alternatives are not even regulated. Moreover, just transferring real estate from you to a company you own would cost a fortune in taxes, making the plan completely unfeasible. And you have to declare the transmission/sale at market value, so imagine the increase in wealth if you inherited that house from your grandfather 40 years ago. The IRS does not ask you for taxes when transferring the residence to a trust or to an LLC? Thanks in advance Clint!
Hi, can you use this strategy on your personal residence if you still have a mortgage note on it? Can you transfer it to a land trust while still having a mortgage or do you have to own it free and clear before transferring?
The homeowner could form a asset protection trust or maybe even spendthrift trust (if the state in question recognize it) and have assets and property placed into that trust. Although in some instances the trust is disregarded and assets are access, it generally does provide some protection against a judgement creditor since the agreement would the beneficiary wouldnt be able to sell the assets but the trustee can. A statutory trust like a delaware statutory trust may add more protection if form correctly as well.
@@chrisdonner2910 I am familiar with the entity but not in its setup or actual use. We debated internally on how to best use this structure but ultimately settled on the Wyoming Statutory Trust.
How do you feel about a blanket policy. I purchased one from Allstate that stipulates if I get sued personally for any reason it will pay out up to 1 million dollars.
Geico sold me a $1m policy for $100 per year a few years ago. But umbrella policies don't cover judgments for debt which is what he's talking about here. I believe they cover you over the limits of your insurance if you hurt someone in an accident--helps to prevent losing your home to pay damages.
can you open a bank account under this trust name so when you sell the house and take the cash and put it in the bank the creditor cant go after the money?
Not to be a Negative Natalie but I just need to ask this question about battle-testing: Has there been a case where this strategy crumbled and that the homeowner still paid out? Thanks in advance.
No idea. This is designed to discourage a creditor from going after your home and I give you an example near the end of the video of how a creditor might break the LLC.
@@ClintCoons ..In this scenario could the Owner set it up where they're paying small monthly "rental payments" to the Land Trust or the first LLC EX: D-IO, LLC or would any of that complicate the Land Trust's home exemption benefits?
@@Bentleygirl7 You could but at the end of the day the below-market rent will not hold up and you could blow your 121 gain exclusion if audited. I like the thought process but not worth the risk in my opinion.
Sir, can you help us how to fill up first the preliminary change of ownership and the Grant deed before you set up the land trust so we will not screw up everything.
A land trust is very different from a living trust. A land trust allows for the assignment of beneficial interests so you can transfer your ownership interest in the trust to another person or entity. Check out by land trust content.
I live in California where I have a 7K homestead exemption. My question is -- how does QPRT work where I "gift" the home to a special needs trust for my son where I am trustee for life. Am I allowed to do a QRTP? I also have a mortgage that I'm paying down. Can the lender block this transfer?
So I don't understand...the trust is not recorded anywhere...it sounds like you just fill out the trust paperwork and sit it in a drawer? What is done with the trust paperwork?
Could be an LLC or trust unless the land has a separate deed then possibly 2 entities. Hard to say without a consult. If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession
Hi Clint, I am going to live in a house on a large acreage of land that will be dedicated for bee keeping and cow pasturing in Hawaii. This will be my primary residence, however it also will be used for agriculture businesses. What should I place the property: Wyoming LLC or Primary Residence Trust? Probably in Wyoming LLC as it provides anonymity and legal protection? Thank you for your advice.
but before you will do the land trust, i have to submit first the preliminary change of ownership where in what phone number will i used because the trust is already the owner of the property.
I did discuss with one of your advisors the option to sell my personal residence to my C-Corp. Is that a better strategy then what you show here? Would that be the better option if I decide to rent out my primary residence?
Selling your PR is a tax/business planning move. It is a great strategy if you are turning your PR into a rental. This strategy is for those who own their PR and would like some asset protection.
That's a great question. For a more personalized answer, I suggest scheduling a free 45-minute consultation with my team. We’ll provide advice tailored to your specific situation. Visit: aba.link/0fa74d
Clint I am in the process of selling my house ( in Oklahoma ) and 25 years ago I put it in a trust ( and recorded it at the county court house ) I now have not been able to find the trust document and the family buying the house went through a closing co. They will not go any further without the trust document . I put the house in a quit claim deed and filed it but the closing co says I can't do that . I am at wits end with the closing company that is charging this family thousands to do the closing . Note : we have proceeded on they paid us 75k and are paying us 1k every mo. and as per our contract they will be paying us off in 17 months and at that time we will sign the property over to them ( deed the property over to them ) can I do that ( I am the only survivor on the trust and I am filling out an affidavit stating that the trust is no longer active . Can I enlist your council in this matter . ?
Rod set up a new trust with the same name but call it a restated trust agreement. A restated trust replaces the original. Do this all the time for clients who are in similar situations.
If I wanted to set up a PPT (personal property trust) & put my personal bank account in it. Now that trust name replaces my real name. Can child support take any money I put into that account if I owe them ?
How about if I set up a Wyoming company(LLC Taxed as C Corp) for active income on fix & flips. Let’s say I never decide to pay my self a dividends, but still run the company. Can child support get to that Wyoming company and take any money it earns ?
How do we appeal the case if the county tries to reassess my property in California when I am no longer the owner (now the trust) nor the beneficiary (now the LLC) of the trust? Do I show that I control the trustee as well as the LLC who's the beneficiary?
This is handled when the deed is recorded. The assessors office will request a copy of the trust to verify the trust was set up as to not trigger prop 13.
Thank you for your response! Would it work just as well to use a disregarded New Mexico LLC as the trustee while using a WY LLC to hold the beneficial interest?
Hi, does the land trust need to be set up in the state where the property is located? I live in CA but if thinking about buying property in TX, where would I set up the Land Trust? Thank you.
Typically I would use the state where the trustee or beneficiary is located. If the property you are buying is an investment then consider a WST rather than a land trust. If it is a residence then stick with the land trust.
@@ClintCoons Thanks for the reply very helpful. I was going to set up the land trust for the property that I’ll be buying in Texas in that same state but looks like I should be setting up the land trust in California since the trustee is located there.
Clint, thank you for the informative videos! I have a question about using a HELOC for a personal residence for asset protection. When utilizing a HELOC, is it necessary to withdraw cash from the loan and place it elsewhere to create the appearance of reduced equity Or does simply having the HELOC loan in place serve as a means to maintain the illusion of minimal equity?
Place it on the property and do not use it until you think it is necessary to pull the cash out for investment. Do not pull the cash and state your purpose is asset protection (this language is incorporated into the operating agreement for your WY LLC that will hold the cash.)
The expenses on transferring titles are astronomical , the clerk at the register of deeds will tell you that you need an attorney to transfer the deed!
Hi Clint, I'd like your advice with this scenario. Say my friend & I wanted to setup a partnership LLC to hold a property & an S-corp to save on taxes. Say the property is a duplex, & on one side we Airbnb it & on the other side my friend lives in it BUT he Airbnb one of his rooms. The property does have a mortgage & he does get homstead exemption. Since he lives there & does get homstead exemption I'm thinking the partnership LLC+S-corp wouldn't be feasible. So then, would it be better to setup a land trust for the property & he just files a schedule E & just 1099 me since I'll be managing the property? Thank you in advance. Looking forward to your feedback.
If Law Enforcement ever came to my home and asks who the owner is, legally, I must say it's owned by the trust. If asked what I'm doing in this house, what should I say? I am not the owner and I'm not a tenant. What is the proper answer?
I have 3 partners, we have 1 (Wy LLC) taxed as a partnership for holdings and 2 local LLC's. 1 local for flips (taxed as s-corp) and 1 local for rentals (taxed as partnership) is it wise for all to have the same name with the ends different ie: brown holdings, brown investments, brown developments?
Don this is an excellent question. 1. You need to get the LLC taxed as an S-Corp out of the WY LLC ASAP. If you leave the S-Corp LLC with the WY LLC as its member your will lose your S-Corp tax status and it will default to a C. BIG ISSUE!!!. 2. I would avoid having the same names on all of your entities because it ties them together and it confuses the hell out CPAs and Attorneys when consulting on your structuring. Just yesterday I told one of my clients she needed to change the name of some of her entities because it was creating too much confusion for my staff and her with the communication. She even put the wrong name down on some agreements because she forget which entity was the right one.
If you did the HELOC strategy, do you actually have to withdraw the money (in your example the 900k)? Or can you just have the HELOC set up and never withdraw on it? Would that still provide protection if you never withdrew on the HELOC?
Sir, so what mailing address will i used at the PCOR form? Will i used the physical address of the property or the P.O. Box address that i used at the mail property tax information? Is it okay that i used my name at the mail property tax information ? Thank you for all your videos that helps a lot of people. God Bless and stay safe.
A couple of questions. Could you put all your vehicles in a business LLC? Then could you put your house into a another LLC . and rent it to your self? The down-side would be loseing the tax benefit of the sale of a personal home. something to think about.
Correct on the sale of the house and you would be subject to state taxes on the lease of the vehicles. I have a video coming out in a few weeks on hiding personal property.
Will this be an issue with a due on sale clause that a lender may have on the mortgage? I understand that we aren't selling the property from ourselves to the land trust or LLC but what type of issues might we run into when attempting to transfer the dead over so we cant be seen as the owner in a property search?
Yes but it does not mean it will. In 22 years of practice this has only occured 5 times to my knowledge and we have helped over 17k investors protect their real estate.
how to decide if you want a Land Trust arrangement or a "friendly lien"? friendly is apparently easier but does not provide anonimity, the said property equity is several millions
Since the personal residence will not be a rental and is not a business, is it necessary to have an in-state LLC and pay the $800/yr California franchise fee? Or may I use yet another WY LLC? Of course, this LLC will be owned by the holding company WY LLC. Thanks again.
Understood. The Trustee LLC will be a WY LLC. My question is regarding the Beneficiary LLC for the Land Trust. For personal residences, does that Beneficiary LLC need to be in-state or could it be another WY LLC since it won't really be in the business of renting out property? This way, one could save the $800/yr Franchise Tax fee. Of course, this Beneficiary LLC will be owned by the WY LLC Holding Company.
If you are renting then you would enter into the lease agreement between your business and the property owner. You can no transfer the real estate into the LLC because you do not own the property.
Your contents are very much appreciated. Can you establish a land trust first prior to having the real property? and can a trust be a freestanding entity without it being in an LLC?
Yes but assuming you will be opening a bank account in the name of the trust so you are ready to take title when a deal comes along otherwise, why do it before you have a deal. A land trust can be set up in mere minutes when you find a deal.
@@ClintCoons hey I really liked your video I'm quite familiar with this though I haven't done it myself I have a question I have a real property that I owned it is recorded in the city which I reside in my wife's name it is deeded in both of our names and we have a house payment I took out a home equity line of credit back in 2017 for like $14,000 I defaulted on this 14,000 to take my taxes and they're already lienholder second lienholder on the house I have another person that is a lienholder on my property that borrowed me 10 grand which is a friend of my real estate lawyer that handles most of all my real estate transactions so altogether I have the mortgage which is first lien holder of the true deed second financial institution that borrowed me 14000 and thirdly a personal friend of my lawyer which it is in his name that he put his name on the lean as lienholder of my property so I have a total of I think about $24,000 in debts that I owe to two different people an institution a credit union and the bank is thirdly 90000 that I always had make that payment every month it might be last now because every month they take out so much for interest and principal now can I as of right now take my property put it in a trust and neither have the trust backed by a corporation or LLC and what would be better Corporation or LLC I heard the corporation would be better and also I heard that whoever my lawyer that I'm using it this Pacific time could give him limited power of attorney that any Communications or anybody that wants to look at the property to buy it whether it's commercial industrial a house a building land exedra the communications would be strictly through the trust name whatever it is and if so that trust can you just make up any name and then record that trust with your lawyers name or firms name that he represents and then on top of that if somebody tries to sue me personally or my wife or if they put a lien on the actual trust in sue the corporation that I represent or my lawyer represents would they be able to get any real property or that property if it is in a trust and also would I be able to borrow once I convert this home over to a trust with a corporation or LLC within the trust would I be able to go to a lender to borrow money even though I am not the beneficiary on title it would be the trust my lawyer or his firm or the corporations or LLC name that is on deed and would they be able to see the prior I was my name was on the deed with my wife and try to hold that against me from borrowing against this real property that is secured in a trust within an LLC or Corporation second of Lee somebody I have a judgment that owes me money right now currently active I just filed a lawsuit against them and it is a family member close now this building that I'm suing for or this amount of money is the only tangible real property that I know of that they have within their possession there is too much tension right now to continue on with the lawsuit so I'm going to dismiss the lawsuit and just file a lien within a trust and I'm trying to see if having my lawyer for his firm for all Communications or should I just put the trust name and all Communications through my LLC for corporations name whether it's a settlement or somebody puts a response to try to figure out who I am or who owns this trust the beneficiary of it so basically if I do it this way or one of these ways they are never going to know even my close family member of who this is unless they're somehow find out that I'm affiliated with this lawyer or lawyer's firm acting within the trust and even if they file a motion to throw out the lean would they have to hire corporations lawyers or would they be able to go to court in Pro per against these allegations and when they go to court if they file a motion can we move this lean when I specifically have to go to court because I represent the corporation or LLC even though I'm not directly connected my name anywhere to it would I have to hire legal counsel like Corporation lawyers or just a trust lawyer or if I am making my lawyer all paperwork motions via you have to go through him or his firm that would be satisfiable same thing with my home if I put my home into a trust and then a corporation that I start or an LLC which I think a corporation would be better because there can be multiple people underneath that Corporation should I have something in writing if I have the lawyer to handle all the transactions as limited power of attorney only to intake information and outtake information to me or my LLC or Corporation with that being said if I did this for placing a lien or for all my properties of any type of real estate business doings limited power of attorney only to disperse paperwork to the oppressing which is the litigations that are being brought against the trust or LLC or Corporation and I would think that if I have a lawyer or his f i r m to do all the communications with any litigators suing or being sued and my lawyer or his firm would still have to go through my Corporation or LLC entity on any big positions whether selling or buying or making a deal because they have a limited power of attorney to only do paperworkI know this is a lot to ingest but I hope that you can help me am I safer to have that lawyer or his f i r m within the trust and if anything happened to me would I have to have a will or if anything happened to my wife that all proceedingsAnd agreements that were thus made before the death of me or her are uphold and say I put my daughter as beneficiary to uphold that LLC or Corporation and lawyer and or his firm within that trust so basically what I'm saying is it if something happened to me it reverts automatically over to my wife if something happened to my wife it reverts back all automatically over to me and if something happened to the both of us it would go into my daughter's name until she's say 18 years old so she can make competent decisions at that time and also should I have any provisions in the contract between me and the lawyer that is representing this trust that if he is doing something that we don't agree on whether I have passed on or my wife or the both of us and it is left of my daughter that she has a right because they only have limited power of attorney to handle the paperwork to get another lawyer because a lot of these lawyers can do Shady things if the parents died and nobody knows what's going on and put their own Trust an lien against the property if there were say a couple years gone by that they were not getting no money to handle paperwork and transactions affiliated with the property I would think that if we have the right contract read up and limited power of attorney that they can only take out the proceeds and whatever they charge hourly or by the documents flat rate fee if the individual which was their client me my wife or my daughter what's up I could have something like that typed up and read up within the provisions of the limited power of attorney of that lawyer or his firm so thank you so much and I look forward back to hearing from you on your input of this
I currently own a rental property in Texas but the loan is still under my name. How do I go about protecting my personal assets through the use of LLC, LLC disregard, or Land Trust?
Would you like to learn more about this topic and talk to someone? Schedule a free consultation here: 👉 aba.link/0fa74d
I am home bound recovering from surgery. I am handling it better learning so many things from Clint and Toby! Thank you!
Thanks Neva get better soon!
Can’t wait for my consultation. So awesome what u all do to educators everyone!
My pleasure!
I love this stuff! When I was a kid I thought I wanted to study law. Then I got turned off by the litigation aspect. But if I were doing this stuff, helping people protect against ambulance chasers, I think it's a profession I could be proud of.
Ive been wondering about this one and worried about a due on sale clause if moving to an LLC. Thanks for the video!
Glad it was helpful!
Freddie Mac states due on sale clause won’t be activated if you also own the LLC
I live by the theory, buy where you can rent, rent where you want to live. So buy all properties and have say a manager managed single member Wyoming LLC own them, then pay rent in whichever one you want to live in, and rent the others. You can freely live in anyone you want. The Wyoming LLC gives you a salary, set up a property management company that is owned by that LLC, lease it to that company or have it handle property management to accept rent payments for all properties, then you pay rent to that company, then that company pays the Wyoming LLC. Do the same thing with vehicles, you won't have to rent the vehicle, it is a company vehicle assigned to you, the company pays insurance, maintenance and fuel.
Thank God, I live in Texas 100% homestead exemption
Thank you for educating me.
@tairam9383
Thanks for watching.
Digital Gold, hiding in plain sight on youtube. Thanks Clint.
In the 2nd LLC you can book the house as a retirement element .so they cannot claim it for many yrs till you retire...most company owners never truly retire..so they cannot touch the house..unless you decide to flip it
Client how do you get your name out of the mortgage
thanks
8:00 What do you mean by "take my policy limits"?
The amount you are insured for is your policy limits. Thanks for watching.
Wow! Thanks, I need this information
Glad it was helpful!
Amazing legal stuff in your channel Clint! Thanks a lot. As an spanish legal advisor, I like to compare the options of US legal body against the spanish one...AND YOU ALWAYS WIN! To begin with, in Spain there are no trusts and trust alternatives are not even regulated. Moreover, just transferring real estate from you to a company you own would cost a fortune in taxes, making the plan completely unfeasible. And you have to declare the transmission/sale at market value, so imagine the increase in wealth if you inherited that house from your grandfather 40 years ago. The IRS does not ask you for taxes when transferring the residence to a trust or to an LLC? Thanks in advance Clint!
Correct - no tax is due when transferring into a trust or LLC that you own.
@@ClintCoons thanks a lot
How much would something like this cost to put together?
Around $1500 with the deed preparation and filing.
Could a ppp loan help this situation at all ?
A secured loan against the property will provide some protection.
This it really good stuff
How do you keep your homestead exemption and benefits if it is owned my LLC?
You would not use the LLC if you live in an unlimited homestead exemption state.
Hi, can you use this strategy on your personal residence if you still have a mortgage note on it? Can you transfer it to a land trust while still having a mortgage or do you have to own it free and clear before transferring?
Not at all. Most clients who set up this strategy have a mortgage on their residence. Yes this works with a mortgage.
I love Clint!!
😀
How much does it usually cost to set up an anon company in wyoming a then in cali? Do u charge by the hour or per project.
We do not charge by the hour. It is a flat fee. It runs about $2500
The homeowner could form a asset protection trust or maybe even spendthrift trust (if the state in question recognize it) and have assets and property placed into that trust. Although in some instances the trust is disregarded and assets are access, it generally does provide some protection against a judgement creditor since the agreement would the beneficiary wouldnt be able to sell the assets but the trustee can. A statutory trust like a delaware statutory trust may add more protection if form correctly as well.
Thank you.
Any success stories from clients here? It’s hard to tell how much of this is theoretical vs really effective.
I provide examples throughout my videos of people who were sued and either lost or were saved. These are all real life examples.
@@ClintCoons Any experience with WY Statutory Foundations?
@@chrisdonner2910 I am familiar with the entity but not in its setup or actual use. We debated internally on how to best use this structure but ultimately settled on the Wyoming Statutory Trust.
Depends if you get sued and ate liable for negligence
So do I rent this property from the land trust?
No you do not. The land trust is just a title holding entity.
Would it trigger tax reassessment if deeded to WY trustee LLC,land trust ? Would that make the property step outside personal umbrella insurance?
Not if it is done properly.
Why does the LLC has to be in Wyoming vs where the property is, or where the owner lives?
The Wy LLC gives you anonymity and charing order protections. A second LLC will be set up to hold the property.
do you know anything also about non statory trusts also? like Massachusetts business trust?
MA business trusts require registration with the secretary of state. The WST is essentially the same animal.
@@ClintCoons ruclips.net/video/nYI-Pz8aOwY/видео.html, these people are claiming pure nonstatutory trusts exist under common law, is it bs
How do you feel about a blanket policy. I purchased one from Allstate that stipulates if I get sued personally for any reason it will pay out up to 1 million dollars.
You just saved me a bunch of time. I've bern trying to find a policy that provides this but didn't know the term! Thanks!
@@evancampbell5575 - 264$ for one year of coverage. And no problem.
@@LucifersDeathSquad appreciate it man. I'm looking in to it now - seems to be cheap. Thanks for the knowledge!
Geico sold me a $1m policy for $100 per year a few years ago. But umbrella policies don't cover judgments for debt which is what he's talking about here. I believe they cover you over the limits of your insurance if you hurt someone in an accident--helps to prevent losing your home to pay damages.
@@Elizabeth-yg2mg that's impressive! Thanks for sharing
can you open a bank account under this trust name so when you sell the house and take the cash and put it in the bank the creditor cant go after the money?
Yes but if the creditor comes after the trust then the funds could be taken
how about offshore trust
Here is a video for you: ruclips.net/video/_d4_tclXuSo/видео.html
Informative
Can you take any clients in MA?
If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
Just curious if you are able to do this with vehicles to protect them as well?
Yes but it is referred to as a personal property trust. I have a video coming out in a month on this strategy.
Not to be a Negative Natalie but I just need to ask this question about battle-testing: Has there been a case where this strategy crumbled and that the homeowner still paid out? Thanks in advance.
No idea. This is designed to discourage a creditor from going after your home and I give you an example near the end of the video of how a creditor might break the LLC.
@@ClintCoons ..In this scenario could the Owner set it up where they're paying small monthly "rental payments" to the Land Trust or the first LLC EX: D-IO, LLC or would any of that complicate the Land Trust's home exemption benefits?
@@Bentleygirl7 You could but at the end of the day the below-market rent will not hold up and you could blow your 121 gain exclusion if audited. I like the thought process but not worth the risk in my opinion.
@@ClintCoons Oh, k.. Thanks 🤗
Can a land trust still have a homestead exemption?
Yes if is is properly reserved in the deed.
@@ClintCoons Thanks so much for responding!
Couldn't I purchase the home through the llc live in the home as a tenant and pay rent to myself?
You could but the tax issues with doing it may not outweigh the benefit in the long term.
doesn't it trigger a tax reassessment when you transfer the deed from your name to LLC?
Not if it is going into a trust.
Sir, can you help us how to fill up first the preliminary change of ownership and the Grant deed before you set up the land trust so we will not screw up everything.
When we set up a land trust will we typically handle the deed and PCOR with the setup unless the client opts not to engage us on the deed.
How do you get your name out of the property
Great video! What about an off shore trust? Could the property be owned by an offshore trust?
Yes real estate can be owned by an offshore trust.
Thank you for your RE Investors Asset videos as well as this vid. Do you also work with people in CA?
Yes we do
@@ClintCoons good to know. I hope to contact you soon.
So I don't need to do this if I'm Homesteaded in FL?
Correct
Is it a land trust the same as a living revocable trust, just with a different name? or a land trust is specifically used to hold only real property?
A land trust is very different from a living trust. A land trust allows for the assignment of beneficial interests so you can transfer your ownership interest in the trust to another person or entity. Check out by land trust content.
Do we need to pay the house off before putting it in a trust?
Not at all.
Thank you
I live in California where I have a 7K homestead exemption. My question is -- how does QPRT work where I "gift" the home to a special needs trust for my son where I am trustee for life. Am I allowed to do a QRTP? I also have a mortgage that I'm paying down. Can the lender block this transfer?
The QPRT does not work with a mortgage. Maybe consider a straight residence trust for anonymity.
@@ClintCoons will do. Do you work in California?
@@GPG0000 Yes we do
Hawaii only 20k
Ugh
So I don't understand...the trust is not recorded anywhere...it sounds like you just fill out the trust paperwork and sit it in a drawer? What is done with the trust paperwork?
How does this strategy compare to the residence being held by a revocable living trust?
The living trust is typically in your name so this strategy provides anonymity.
My personal resident is a farm and a bnb. how would I set that up?
Could be an LLC or trust unless the land has a separate deed then possibly 2 entities. Hard to say without a consult. If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
If I have a home FMV of 800K, with a mortgage of 400K, and a HELOC (unused) of 200K, should I still consider a DAPT?
No but consider a residence trust.
@@ClintCoons Great, thank you. Do you have a podcast on a "residence" trust? Also, this is in Utah. Thanks.
even if you are still paying the mortgage? do i have to contact my lender /get approval from lender?
No you do not if you are placing the property into a trust.
does this work in california and nevada. how can we call you for con sultation.
Yes it does. If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
How about a primary residence trust? Thank you
Yes that is correct.
Thank you Clint. It does offer anonymity, but not really legal protection. Why not place the primary residence in a Wyoming LLC?
@@guardpeace1740 You could but a creditor could blow it up for lacking a true business purpose.
@ ok, that makes sense, thanks
Hi Clint, I am going to live in a house on a large acreage of land that will be dedicated for bee keeping and cow pasturing in Hawaii. This will be my primary residence, however it also will be used for agriculture businesses. What should I place the property: Wyoming LLC or Primary Residence Trust? Probably in Wyoming LLC as it provides anonymity and legal protection? Thank you for your advice.
sir clint, can the beneficiary be also the trustee and can a non-citizen be a beneficiary.
Yes.
What about if u still have a pers loan on the property?
This will not affect the loan.
How would this strategy work in NewYork ?
You can use trusts to hold real estate in NY.
but before you will do the land trust, i have to submit first the preliminary change of ownership where in what phone number will i used because the trust is already the owner of the property.
Are you asking what number you will use on the PCOR? You can always obtain a google number if you are not comfortable using your cell.
In what part of the process is the PCOR submitted? I don't recall seeing that in this video.
You touched on pocket deeds before. Can’t you have a pocket deed naming a trust and record it in event of lawsuit/judgement?
Yes. A property transfer occurs when you meet the legal requirements to deed property.
Can Vehicles be set up like this too? In the worst case, they can take the car.
Yes but you would use a personal property trust.
Why the land trust? Why not just have the LLC own the residence?
I did discuss with one of your advisors the option to sell my personal residence to my C-Corp. Is that a better strategy then what you show here? Would that be the better option if I decide to rent out my primary residence?
Selling your PR is a tax/business planning move. It is a great strategy if you are turning your PR into a rental. This strategy is for those who own their PR and would like some asset protection.
@@ClintCoons excellent!!! Would I be able to use this strategy in the video, and at a later date, conduct the installment sale to my C corp??
@@evas428 Yes but an S-Corp would be better.
If I put my personal home in a Land trust will I still get the homestead exemption ?
That's a great question. For a more personalized answer, I suggest scheduling a free 45-minute consultation with my team. We’ll provide advice tailored to your specific situation. Visit: aba.link/0fa74d
Clint I am in the process of selling my house ( in Oklahoma ) and 25 years ago I put it in a trust ( and recorded it at the county court house ) I now have not been able to find the trust document and the family buying the house went through a closing co. They will not go any further without the trust document . I put the house in a quit claim deed and filed it but the closing co says I can't do that . I am at wits end with the closing company that is charging this family thousands to do the closing .
Note : we have proceeded on they paid us 75k and are paying us 1k every mo. and as per our contract they will be paying us off in 17 months and at that time we will sign the property over to them ( deed the property over to them ) can I do that ( I am the only survivor on the trust and I am filling out an affidavit stating that the trust is no longer active . Can I enlist your council in this matter . ?
Rod set up a new trust with the same name but call it a restated trust agreement. A restated trust replaces the original. Do this all the time for clients who are in similar situations.
What is the cost of maintaining a WY LLC?
Including the RA fee fee - $150
If I wanted to set up a PPT (personal property trust) & put my personal bank account in it. Now that trust name replaces my real name. Can child support take any money I put into that account if I owe them ?
YES!
How about if I set up a Wyoming company(LLC Taxed as C Corp) for active income on fix & flips. Let’s say I never decide to pay my self a dividends, but still run the company. Can child support get to that Wyoming company and take any money it earns ?
Would the C Corp work for this ^?
If you owe child support and she files and gets a government check, it doesn't matter they will put you in jail.
Just ask my ex brother-in-law.
Isn't a Land Trust (Grantor Trust) subject to the grantor’s creditor claims, therefore defeating the "LLC as Beneficiary" structure?
The term "Grantor Trust" is a tax term used in the IRC and has no bearing on state law issues surrounding asset protection.
sir clint, can i put first my personal residence in a homestead exemption in california before i will transfer into the Land trust.
Yes the trust will not affect the homestead.
But you said to use a residence trust NOT A LAND TRUST???
Correct. They are similar. I used to refer to it as a land trust but when it is drafted certain provisions are modified.
How do we appeal the case if the county tries to reassess my property in California when I am no longer the owner (now the trust) nor the beneficiary (now the LLC) of the trust? Do I show that I control the trustee as well as the LLC who's the beneficiary?
This is handled when the deed is recorded. The assessors office will request a copy of the trust to verify the trust was set up as to not trigger prop 13.
At the time of recording, the beneficiary will be me. Once it's recorded, I do an Assignment of Beneficiary to my LLC? Is that correct?
Why is it important for the wyoming LLC that acts as the nominee trustee to be a partnership and why can't it also be a disregarded entity?
The WY LLC (trustee) is disregarded.
Thank you for your response! Would it work just as well to use a disregarded New Mexico LLC as the trustee while using a WY LLC to hold the beneficial interest?
@@paulc.3333 Yes that will work
Why not put your home in a Irrevocable Trust with a different EIN #
You are probably referring to a QPRT and you could provided your house is free and clear of any debt.
Hi, does the land trust need to be set up in the state where the property is located? I live in CA but if thinking about buying property in TX, where would I set up the Land Trust? Thank you.
Typically I would use the state where the trustee or beneficiary is located. If the property you are buying is an investment then consider a WST rather than a land trust. If it is a residence then stick with the land trust.
@@ClintCoons Thanks for the reply very helpful. I was going to set up the land trust for the property that I’ll be buying in Texas in that same state but looks like I should be setting up the land trust in California since the trustee is located there.
Clint, love your videos man. Was curious: what if you did end up paying rent to the trust? Would strengthen your defense?
No because the trust does not offer asset protection. The trust is merely a smoke screen.
Clint, thank you for the informative videos! I have a question about using a HELOC for a personal residence for asset protection. When utilizing a HELOC, is it necessary to withdraw cash from the loan and place it elsewhere to create the appearance of reduced equity Or does simply having the HELOC loan in place serve as a means to maintain the illusion of minimal equity?
Place it on the property and do not use it until you think it is necessary to pull the cash out for investment. Do not pull the cash and state your purpose is asset protection (this language is incorporated into the operating agreement for your WY LLC that will hold the cash.)
The expenses on transferring titles are astronomical , the clerk at the register of deeds will tell you that you need an attorney to transfer the deed!
Hi Clint, I'd like your advice with this scenario. Say my friend & I wanted to setup a partnership LLC to hold a property & an S-corp to save on taxes. Say the property is a duplex, & on one side we Airbnb it & on the other side my friend lives in it BUT he Airbnb one of his rooms. The property does have a mortgage & he does get homstead exemption. Since he lives there & does get homstead exemption I'm thinking the partnership LLC+S-corp wouldn't be feasible. So then, would it be better to setup a land trust for the property & he just files a schedule E & just 1099 me since I'll be managing the property? Thank you in advance. Looking forward to your feedback.
What state?
@@ClintCoons Louisiana
@@fluent_In_finance He should consult a local attorney about this setup to make sure he does not blow the homestead exemption in LA.
When you transfer beneficial interest in your land trust that is holding your PR to your disregarded WY LLC Do you lose your 121 gain exemption?
not if your LLC is treated as a disregarded entity.
How much does this cost?
How long does it take to do the process?
It costs around $1,500 and takes about 3 weeks.
Can you have a trust designated as the member of the disregarded beneficiary LLC? Wouldn’t that make it easy for estate planning as well?
Yes you can.
If the primary residence is in a living trust, should we move it to an LLC in WY for asset protection?
No but you might consider a land trust. See ruclips.net/video/N4UjEL9fBdQ/видео.html
Will this arrangement protect seniors who have been in nursing homes or had home health care assistance paid for by Medicare?
No it will not. Medicaid planning requires moving assets before a person applies for benefits. We do not specialize in senior planning.
I would go with HELOC option to encumber once shit hits the fan and in addition buy in a flood plain area just to make it more unattractive.
If Law Enforcement ever came to my home and asks who the owner is, legally, I must say it's owned by the trust. If asked what I'm doing in this house, what should I say? I am not the owner and I'm not a tenant. What is the proper answer?
You would tell them you are the beneficiary of the trust.
I have 3 partners, we have 1 (Wy LLC) taxed as a partnership for holdings and 2 local LLC's. 1 local for flips (taxed as s-corp) and 1 local for rentals (taxed as partnership) is it wise for all to have the same name with the ends different ie: brown holdings, brown investments, brown developments?
Don this is an excellent question. 1. You need to get the LLC taxed as an S-Corp out of the WY LLC ASAP. If you leave the S-Corp LLC with the WY LLC as its member your will lose your S-Corp tax status and it will default to a C. BIG ISSUE!!!. 2. I would avoid having the same names on all of your entities because it ties them together and it confuses the hell out CPAs and Attorneys when consulting on your structuring. Just yesterday I told one of my clients she needed to change the name of some of her entities because it was creating too much confusion for my staff and her with the communication. She even put the wrong name down on some agreements because she forget which entity was the right one.
@@ClintCoons Thanks for the response. So I'd just set up a Wyoming corp to hold the local LLC (taxed as s-corp)? Thanks!
Asides from title insurance, how effective are HELOCs and friendly liens against house-stealing/title fraud?
Check out this video: ruclips.net/video/Y_q7mOjoKTs/видео.html
If you did the HELOC strategy, do you actually have to withdraw the money (in your example the 900k)? Or can you just have the HELOC set up and never withdraw on it? Would that still provide protection if you never withdrew on the HELOC?
Yes you can
Sir, so what mailing address will i used at the PCOR form? Will i used the physical address of the property or the P.O. Box address that i used at the mail property tax information? Is it okay that i used my name at the mail property tax information ? Thank you for all your videos that helps a lot of people. God Bless and stay safe.
You do not want to use an address associated back to yourself. Yes a PO Box or similar would be used.
A couple of questions. Could you put all your vehicles in a business LLC? Then could you put your house into a another LLC . and rent it to your self? The down-side would be loseing the tax benefit of the sale of a personal home. something to think about.
Correct on the sale of the house and you would be subject to state taxes on the lease of the vehicles. I have a video coming out in a few weeks on hiding personal property.
Will this be an issue with a due on sale clause that a lender may have on the mortgage? I understand that we aren't selling the property from ourselves to the land trust or LLC but what type of issues might we run into when attempting to transfer the dead over so we cant be seen as the owner in a property search?
No because this is a grantor trust.
Can't a lender accelerate the loan on the "due on sale clause" if you transfer the property out of your name?
Yes but it does not mean it will. In 22 years of practice this has only occured 5 times to my knowledge and we have helped over 17k investors protect their real estate.
I am on medical disability I live in Virginia I have a property and a car attached to my name. I know they cannot garnish my disability check
how to decide if you want a Land Trust arrangement or a "friendly lien"? friendly is apparently easier but does not provide anonimity, the said property equity is several millions
Do both.
Since the personal residence will not be a rental and is not a business, is it necessary to have an in-state LLC and pay the $800/yr California franchise fee? Or may I use yet another WY LLC? Of course, this LLC will be owned by the holding company WY LLC. Thanks again.
If you want anonymity then you will use a WY LLC as the trustee. CA will require you pay $800 on any LLC you own regardless of where it is filed.
Understood. The Trustee LLC will be a WY LLC. My question is regarding the Beneficiary LLC for the Land Trust. For personal residences, does that Beneficiary LLC need to be in-state or could it be another WY LLC since it won't really be in the business of renting out property? This way, one could save the $800/yr Franchise Tax fee. Of course, this Beneficiary LLC will be owned by the WY LLC Holding Company.
Help...so if I rent a house from an individual...but I am using it as a business residence..how do I add this property to my LLC
If you are renting then you would enter into the lease agreement between your business and the property owner. You can no transfer the real estate into the LLC because you do not own the property.
@@ClintCoons Wow thanks awesome channel by the way very informative
Your contents are very much appreciated. Can you establish a land trust first prior to having the real property? and can a trust be a freestanding entity without it being in an LLC?
Yes but assuming you will be opening a bank account in the name of the trust so you are ready to take title when a deal comes along otherwise, why do it before you have a deal. A land trust can be set up in mere minutes when you find a deal.
@@ClintCoons hey I really liked your video I'm quite familiar with this though I haven't done it myself I have a question I have a real property that I owned it is recorded in the city which I reside in my wife's name it is deeded in both of our names and we have a house payment I took out a home equity line of credit back in 2017 for like $14,000 I defaulted on this 14,000 to take my taxes and they're already lienholder second lienholder on the house I have another person that is a lienholder on my property that borrowed me 10 grand which is a friend of my real estate lawyer that handles most of all my real estate transactions so altogether I have the mortgage which is first lien holder of the true deed second financial institution that borrowed me 14000 and thirdly a personal friend of my lawyer which it is in his name that he put his name on the lean as lienholder of my property so I have a total of I think about $24,000 in debts that I owe to two different people an institution a credit union and the bank is thirdly 90000 that I always had make that payment every month it might be last now because every month they take out so much for interest and principal now can I as of right now take my property put it in a trust and neither have the trust backed by a corporation or LLC and what would be better Corporation or LLC I heard the corporation would be better and also I heard that whoever my lawyer that I'm using it this Pacific time could give him limited power of attorney that any Communications or anybody that wants to look at the property to buy it whether it's commercial industrial a house a building land exedra the communications would be strictly through the trust name whatever it is and if so that trust can you just make up any name and then record that trust with your lawyers name or firms name that he represents and then on top of that if somebody tries to sue me personally or my wife or if they put a lien on the actual trust in sue the corporation that I represent or my lawyer represents would they be able to get any real property or that property if it is in a trust and also would I be able to borrow once I convert this home over to a trust with a corporation or LLC within the trust would I be able to go to a lender to borrow money even though I am not the beneficiary on title it would be the trust my lawyer or his firm or the corporations or LLC name that is on deed and would they be able to see the prior I was my name was on the deed with my wife and try to hold that against me from borrowing against this real property that is secured in a trust within an LLC or Corporation second of Lee somebody I have a judgment that owes me money right now currently active I just filed a lawsuit against them and it is a family member close now this building that I'm suing for or this amount of money is the only tangible real property that I know of that they have within their possession there is too much tension right now to continue on with the lawsuit so I'm going to dismiss the lawsuit and just file a lien within a trust and I'm trying to see if having my lawyer for his firm for all Communications or should I just put the trust name and all Communications through my LLC for corporations name whether it's a settlement or somebody puts a response to try to figure out who I am or who owns this trust the beneficiary of it so basically if I do it this way or one of these ways they are never going to know even my close family member of who this is unless they're somehow find out that I'm affiliated with this lawyer or lawyer's firm acting within the trust and even if they file a motion to throw out the lean would they have to hire corporations lawyers or would they be able to go to court in Pro per against these allegations and when they go to court if they file a motion can we move this lean when I specifically have to go to court because I represent the corporation or LLC even though I'm not directly connected my name anywhere to it would I have to hire legal counsel like Corporation lawyers or just a trust lawyer or if I am making my lawyer all paperwork motions via you have to go through him or his firm that would be satisfiable same thing with my home if I put my home into a trust and then a corporation that I start or an LLC which I think a corporation would be better because there can be multiple people underneath that Corporation should I have something in writing if I have the lawyer to handle all the transactions as limited power of attorney only to intake information and outtake information to me or my LLC or Corporation with that being said if I did this for placing a lien or for all my properties of any type of real estate business doings limited power of attorney only to disperse paperwork to the oppressing which is the litigations that are being brought against the trust or LLC or Corporation and I would think that if I have a lawyer or his f i r m to do all the communications with any litigators suing or being sued and my lawyer or his firm would still have to go through my Corporation or LLC entity on any big positions whether selling or buying or making a deal because they have a limited power of attorney to only do paperworkI know this is a lot to ingest but I hope that you can help me am I safer to have that lawyer or his f i r m within the trust and if anything happened to me would I have to have a will or if anything happened to my wife that all proceedingsAnd agreements that were thus made before the death of me or her are uphold and say I put my daughter as beneficiary to uphold that LLC or Corporation and lawyer and or his firm within that trust so basically what I'm saying is it if something happened to me it reverts automatically over to my wife if something happened to my wife it reverts back all automatically over to me and if something happened to the both of us it would go into my daughter's name until she's say 18 years old so she can make competent decisions at that time and also should I have any provisions in the contract between me and the lawyer that is representing this trust that if he is doing something that we don't agree on whether I have passed on or my wife or the both of us and it is left of my daughter that she has a right because they only have limited power of attorney to handle the paperwork to get another lawyer because a lot of these lawyers can do Shady things if the parents died and nobody knows what's going on and put their own Trust an lien against the property if there were say a couple years gone by that they were not getting no money to handle paperwork and transactions affiliated with the property I would think that if we have the right contract read up and limited power of attorney that they can only take out the proceeds and whatever they charge hourly or by the documents flat rate fee if the individual which was their client me my wife or my daughter what's up I could have something like that typed up and read up within the provisions of the limited power of attorney of that lawyer or his firm so thank you so much and I look forward back to hearing from you on your input of this
what about driver license address?
Stays the same.
Don't you get the same protection with a living trust?
No. The living trust does not offer asset protection.
I currently own a rental property in Texas but the loan is still under my name. How do I go about protecting my personal assets through the use of LLC, LLC disregard, or Land Trust?
John you should consider placing the rental into an LLC and your savings/brokerage into a different LLC