A KILLER DEAL...(literally) - Posted by Ben(NJ)

Posted by David Alexander on April 15, 2000 at 13:44:24:

See Bud’s post above.

David Alexander

A KILLER DEAL…(literally) - Posted by Ben(NJ)

Posted by Ben(NJ) on April 06, 2000 at 22:52:16:

I got the inside scoop from a tax collector I know that a lien on a property in his town is going up for tax sale and
the owner is in jail for killing her husband. She says whoever buys this lien ($30,000) is sure to get title to
the property (fmv $280,000). The murder did not take place
in the house but it is still kind of a creepy situation. Obviously I don’t want her getting parole and coming back to her (my) house. I’ve seen discussions here on taking title in private entities, what would work here, a trust?

Re: A KILLER DEAL…(literally) - Posted by Zee

Posted by Zee on April 07, 2000 at 02:45:16:

FWIW, I spent many hours recently in the courthouse scannig tax cards on properties near one I was considern buying. Many of these listed trusts or family trusts as owners. But I was surpeised to see how many of those also listes the names of the trusee (grantor?) who signed on behalf of the trust. Like you are asking now, I wonderered then how one could keep his name out of the public record so noone could look your up. I, too, thought the trust idea was the way to do that. Now, I dunno…

Several other porperties did list only the name of the trust.

Maybe this is something your escrow agent can tell you about.

Re: A KILLER DEAL…(literally) - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on April 07, 2000 at 14:52:16:

It is optional to disclose the beneficiary of a trust on public records. The only name that has to be there is the trustee’s name. I recommend setting up a trust, with you as the beneficiary and your lawyer as the trustee. If the killer goes to the courthouse, your lawyer’s name will come up. She can call him. It sounds like she may need a good lawyer anyway.

Is that true in Texas as well? - Posted by TRandle

Posted by TRandle on April 07, 2000 at 17:12:04:

Tim,
We just did our first trust deal and did not record the trustee’s name (me). All the deed says is 123 Main Street Land Trust. Are you just speaking for Georgia or is that true in all states? Anyone else know?

Also, assuming what we did is correct, what are the disadvantages to not having the trustee’s name recorded? I could only come up with benefits. Thanks…

Re: Is that true in Texas as well? - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on April 10, 2000 at 10:20:54:

Yes, the deed may say 123 Main Street Trust, but don’t you (or shouldn’t you for legal purposes) file 123 Main Street Trust at the court house? On that document the trustee would be listed. If a document is not filed at the courthouse with the trustee’s information, how do taxes work. I know that trusts are transparent for tax purposes. Wouldn’t someone’s (preferably trustee’s) name have to be listed at the courthouse for the government to contact regarding legal and tax issues. I thought that was the purpose of having a trustee: to act as a filter/contact point between the beneficiary and the outside world. I am in the process of setting up my first trust as well, and am therefore learning as I go along. Tonight I am going to talk with an expert on trusts at my local real estate investors association meeting. I will let you know if I hear anything contrary to what we have discussed. Additionally, I am unsure if Georgia has special rules regarding trusts.

Re: Is that true in Texas as well? - Posted by Bud Branstetter

Posted by Bud Branstetter on April 11, 2000 at 22:06:17:

Somewhere this has been covered before. A trust is not a entity that has personallity. That is why you need to record the deed as a persons name as trustee. Try selling as the 123 Main trust or cashing a check made out to the trust and not the trustee.

I did a tax property some years ago that the occupant died in the house after the sale but before we took possession. I did not know about land trusts at that time and would have preferred to have ownership in the name of a trustee.

If your in Texas let me know of the property titled in the name of the trust only. We’ll have a good battle when my trust has a prior creation date to yours. The sherriff’s deed won’t have a name on it just the name of the trust. Can you prove you have title or can I trade a mortgage on that trust as down for another property.

Re: Is that true in Texas as well? - Posted by TRandle

Posted by TRandle on April 11, 2000 at 07:27:39:

Tim,
I got no Texas responses, unfortunately. I’ll have to doublecheck, but I believe the deed has the trustee’s address. I’m using myself as trustee and don’t want my name in the records. As long as I receive the mail and I’m not breaking the rules, I don’t see why I would want my name visible.

Re: Is that true in Texas as well? - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on April 11, 2000 at 16:13:02:

Okay, I already admitted that I am a beginner at this.
There is no public record of a trust at the court
house. I am not really sure how the government or IRS
would hunt you down for issues with your property. I
guess they have to do some research to find out the
trustee and beneficiary of the land trust. How they
would do this is beyond me. I found a great site
which helped me a lot. It is posted by a lawyer, and
therefore, I believe it to be reputable. If you get a
chance, I strongly suggest reading the article
regarding entities for real estate at:


Sorry for the mistake. I hope that I everyone works
out will for you.

Tim

Re: Is that true in Texas as well? - Posted by TRandle

Posted by TRandle on April 11, 2000 at 18:58:42:

I have Bronchick’s stuff and that’s what I used. I recall reading posts in the past where folks shared that they used their own names as trustees and included that in title. What I can’t figure out is why we should do that, unless it happens to be required by law? Thanks…