Posted by Daveh on June 30, 2003 at 13:00:13:
Thanks John:
As you say, I only want it to keep my name out the records. I’m using Bronchick’s forms and will use a friend’s name and PO Box for the Trustee.
Is My Old Land Trust Still Valid? - Posted by daveh
Posted by daveh on June 30, 2003 at 07:24:11:
I put my house’s title into a land trust a couple years ago. I recently refinanced and the lender had me quit claim out of the land trust into my own name. Do I simply quit claim back into the land trust created the first time? I don’t need to have the trust document itself recreated and re-signed do I?
Resuse of old trust - Posted by John Merchant
Posted by John Merchant on June 30, 2003 at 10:31:31:
It’s as valid as ever…likely it wasn’t recorded, so you’re the only person aware of it; as to whether you want to use it is a different matter with several things to consider:
First, would this trigger the DOS? If so, the only way to put it into a trust without worry about the DOS would be as per the procedures using the GStG Trust (much on this site about same and how to use)so as NOT to trigger the DOS. Or with the express, written permission of the lender which you’d request, and which they might have no problem in granting.
Secondly, an inter vivos trust is of limited usability if you’re the grantor, trustee and beneficiary… really only a nom-de-plume that could be pierced as easily as tissue paper by anybody with a Judgment against you. Until you die, and it becomes (I presume)a testamentary trust with new beneficiaries and trustee OTHER than those bens. THAT cannot then be easily pierced to grab the assets of the new bens, if you’ve included a spendthrift provision.*
So I’d say it really depends on what you’re wanting it for. Your old trust would probably be fine if you only want to to move the RE into some new recorded name so that RE appears to belong to somebody else, so as to evade any record search of RE owned by you.
If it were my trust, I’d just want to make sure it didn’t have MY name on it so as not to be easily found when some eager lawyer is doing a preliminary search to see if I might be worth suing. This would be a very simple amendment to your existing trust, just to change the name.
*By the way, it would be my advice, if you do include a Spendthrift provision, that you leave written letter of advice for your heirs that they have an election right, immed. after your death, to either accept the trust or DISCLAIM it, under a growing number of states’ laws. This provision allows a ben., at his election to say NO THANKS, I PASS. A handy tool, which might then be used to pass the trust assets on to the other bens, with a side-agreement for them to deed it back to the disclaiming bens.
As you can see, this way, the spendthrift provisions would NOT keep them from reaching their shares of the trust, and if they’re financially OK when you pass on, and have no need for the Sp.Thr. provisions, they’ll probably so elect.