Posted by Lynn on February 26, 2002 at 22:09:33:
Thanks for the detailed answer. I’ll definitely take your advice and also check my states’ trust laws.
Appreciate It,
Lynn
Can property be tranf. to Trust,LLC? - Posted by Lynn
Posted by Lynn on February 26, 2002 at 09:34:38:
In a previous post I asked about obtaining enough financing for my sister and I to buy out cousins interest and also enough for rehab. on house from mothers estate. I was able to find a mtg. co. to finance me as the house has 100% equity and my credit wasn’t quite as trashed as I thought it was, with my sister as co-borrower(her credit is worse than mine).
My question now is how should we hold this property? I was planning on putting the house in a trust and then forming an LLC as beneficiary or trustee(I’m a bit confused about that part). I subsequently read here that I should have told the mtg co. that we were planning to have the title under a trust name. So what should I do now? Can we transfer the house into a trust after the closing? I’ve already been approved for the loan although it hasn’t been funded yet. Any advice would be appreciated.
Lynn
Re: Can property be tranf. to Trust,LLC? - Posted by DavidV
Posted by DavidV on February 26, 2002 at 15:16:13:
You can ask the mortgage company if they will let you take title in a trust, but most won’t do it. You can transfer it after you close on the loan in your name.
Put the property in a land trust and sign a new deed with the trust as title holder and record it. You can either list your LLC as beneficiary when you form the trust, or list yourself as beneficiary and then assign the beneficial interest to your LLC. The reason for doing the 2nd choice is you can show your trust agreement to someone if needed, and they won’t know who the beneficiary is because it has been assigned. You can also use an affidavit of trust, which breifly outlines what is in the trust without listing the beneficiary, if a nosy bank wants to see it for some reason.
Most people advicate using someone else (perhaps your lawyer) as trustee for privacy. You could be trustee if you want. Having an entity serve as trustee may not be legal, so you want check out your state laws on that. Also look up your state trust laws.
David