How much to trust trustee? - Posted by Redline

Real Estate Investing
1

Posted by Stacy (AZ) on February 17, 2001 at 12:00:52:

Arthur, the trust agreement I use does not allow the land trust trustee to do anything without being directed by the beneficiary. Anyone can do illegal things, but my trustee selling the house without my consent is clearly a no-no.

Stacy

2

How much to trust trustee? - Posted by Redline

Posted by Redline on February 16, 2001 at 23:05:08:

Say I’m setting up a land trust and trying to decide on a trustee. I’m considering an out-of-state corp for the trustee (they do this sorta thing) figuring this may add some added protection.

How much trust do I need to have in this trustee? What do I need to look out for? What can a bad trustee leave me exposed to?

Thanks,
RL

3

Re: How much to trust trustee? - Posted by Stacy (AZ)

Posted by Stacy (AZ) on February 17, 2001 at 12:12:07:

Hi RL-

I’ve used relatives in the past, such as my sister, who’s got a different last name (married). She’s local, and can meet me to get paperwork notarized quickly. She gets paid $1 per year (according to the trust agreement) but I normally give her at least $100 per deal closed for her time.

I’ve also learned that an out of state trustee (relative or friend) is better, for obvious reasons. But, I liked the accessibility of having a trustee locally.

Now that I’ve got a corp, I’m the trustee with the corp as beneficiary. You might want to consider this, because it allows you complete control, and much more protection. An LLC would do the same.

The banks I’ve looked at charge too much, in my opinion. Maybe I didn’t look hard enough. Moot point now that I have a corp.

Stacy

4

Re: Use your Bank as trustee… - Posted by Houserookie

Posted by Houserookie on February 17, 2001 at 11:27:36:

They follow directions quite well.

5

Re: How much to trust trustee? - Posted by Arthur Montano

Posted by Arthur Montano on February 17, 2001 at 06:54:22:

I like my Trustee to be local that way I have instant control. The Trustee has complete control since the house is Deeded to him as Trustee and he can sell the house without your permission. The best Trustee is someone in your family with a different last name since I belive they have to be paid. My step-daughter will be my Trustee and get paid $1.00 a month. Don’t quote me on then having to be paid, I just heard that somewhere.

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what stacy said, and bronchic - Posted by AnnNC

Posted by AnnNC on February 17, 2001 at 23:22:18:

The trustee has legal and equitable title but can only act as directed by the beneficiary.