Posted by Stacy (AZ) on March 29, 1999 at 09:19:59:
Yes, good point. It’s not always obvious to everyone here, although we state it over and over again.
Sorry to hear about your state’s laws. So, you cannot use any trust for asset protection in PA? Bummer.
Stacy
Buying under a Land Trust - Posted by AL
Posted by AL on March 26, 1999 at 12:18:58:
Besides putting on the purchase agreement. Buyer… SoandSo Land Trust. Does the Real Estate Lawyer handle it from there?
If not what else do I have to do???
I signed yesterday. Heeeellllpp…
Re: Buying under a Land Trust - Posted by Stacy (AZ)
Posted by Stacy (AZ) on March 26, 1999 at 13:15:39:
Don’t mention it on the sales contract, it’s not needed and may confuse sellers. Just use your name there.
At the time of closing, create the land trust using a declaration of trust, and have the seller deed it into the land trust by using a “Warranty Deed to Trustee”. This is the document that gets recorded, but do not record your declaration of trust.
I agree with Bill Gatten. You really need to learn about it before you try to do it. For example, the deed to trustee is a very specific form of deed. Anyway, your on the right track considering asset protection.
Stacy
Re: Buying under a Land Trust - Posted by Bill Gatten
Posted by Bill Gatten on March 26, 1999 at 12:50:54:
Step No. 1 - Order Bill Bronchik’s book - Get That Property Out of Your Name.
Step No. 2. - Read the book
Step No. 3. - Then post any questions you still have and we’ll all be glad to help. The answer to your question is a bit more complicated than your question.
Bill Gatten
Recording a Land Trust - Posted by Frank [Pgh PA]
Posted by Frank [Pgh PA] on March 29, 1999 at 09:11:10:
Stacy…whenever you make a statement regarding legal matters such as, “…do not record your declaration of trust.” Always add the caveat,“check your own State and Local laws.”
The reason I say this is because around here we are required by law to record the Trust Agreement. It appears that some people who have a vested interest in severly limiting “Asset Protection” and “Avoidance of paying Transfer Taxes” {hmmm…wonder who they could be?]have managed to pass laws to that effect.
Another thing that has happened here in PA is that our state legislators passed a law last year labeled as a “Tax Reform Act” which “redefined” Trusts. The “redefinition” states that any Trust which holds income-producing real estate is now considered by law, to be a “Business Trust,” regardless of it’s recorded title [i.e., “Land Trust”] and, as such, is subject to a minimum $300 per year tax.