Posted by Kim on July 20, 2002 at 20:28:04:
Thank You for your insight.
Assigning Property for a Profit - Posted by Kim
Posted by Kim on July 07, 2002 at 20:48:27:
Does any one here know how to go about assigning property to a trust account or to someone for a profit without the bank calling the loan due? I’m open to suggestions &/or advice.
Re: Assigning Property for a Profit - Posted by Craig (IL)
Posted by Craig (IL) on July 07, 2002 at 22:13:04:
The DOS does not apply if a debtor assigns a loan to a trust where the debtor is the beneficiary.
Re: Assigning Property for a Profit - Posted by Kim
Posted by Kim on July 16, 2002 at 24:02:59:
Thank you Craig for your response. How would one go about assigning property into a trust account & making themself the beneficiary(trustee)?
Re: Assigning Property for a Profit - Posted by Craig (IL)
Posted by Craig (IL) on July 16, 2002 at 19:34:37:
You are talking about a “revokable” trust. There are (a) private trusts and (b) bank held trusts. Most investors use private trusts–trusts which private individuals set up themselves–because there’s no cost adn takes the experinced individual but a few minutes to do the paperwork.
Bank held trusts cost, often a couple or five hundred buckaroos to set up in addtion to a yearly fee. With a bank held trust the bank beconmes the “trustee” and whose name if filled in the county records as the Owner of Record (e.g., National Bank Trust #5555). A private trust would be held in your desk drawer after filing it in your county. It would be necessary to find someone to serve as your trustee (your spouse, your grandmother, someone you can trust). Private trusts often have names such as “Smith Family Trust”, “1234 Main Street Trust”, or anything your li’l ol’ heart desires.
It’s possible for you to seve as both trustee and benificiary, but this is not recommended because it won’t help you much with any court litigation. Private trusts and bank-held trusts can be of equal legal strength, although you would of course have more to say about the structure of the trust when it is private.
If you want a bank-held trust, call several banks (it pays to shop) and talk with the trust official. The bank should be able to lead you through the process. If you nave never established a trust before, if you go for the private trust, have a lawyer draw it up according to your specifications. Lawyers charge a lot but paying a lwayer once will be cheaper than a bank held trust over several years. BE CAREFUL ABOUT THE LAWYER. I’m told that trusts are not typically taught in law school and many lawyers know very little, and some even give completely erroneous advice. Make sure you find a lawyer who has experince with trusts and knows what he or she is doing.