Posted by Dave Rienhart on July 05, 2002 at 23:03:03:
If you are worried about it use a well-known name like Chicago Title or Capstone Bank. Those big reputable firms might charge higher fees but aren’t going to do anything dishonest like encumbering or disposing of your property.
Is Title Holding Trust A Bad Idea? - Posted by Gary
Posted by Gary on February 01, 2002 at 13:39:15:
I own a home and have decided to put it into a title holding trust for many of the benefits talked about on Creonline.
I spoke with another person interested in TH trusts today and he raised an issue I hadn’t thought of…what are you gonna do to protect yourself from a trustee who turns against you?
If you give someone legal title to your property…you no longer own it. They can kick you out, rent it out to someone else, etc.
I explained if that were the case, I’d just take my presigned by my trustee “Transfer to a successor trustee” grant deed and have it recorded, which would transfer legal title back to me.
He then told me that an unscrupulous trustee could hurt you in other ways…putting liens on property, etc. After all, since you’ve deeded your property to a trustee, you no longer own legal title but the trustee does and can do what they will with your property (and probably when you’re not expecting it)
So my question to the smart folks here is this…just how do you structure such a thing to protect your interests in every possible way?
Re: Is Title Holding Trust A Bad Idea? - Posted by William Bronchick
Posted by William Bronchick on February 05, 2002 at 09:34:32:
I think that you are being a little over-cautious. First, a trustee is bound by state law, and if he does anything illegal, it is a criminal offense. You have to assume that most citizens follow the law, otherwise you can make yourself crazy worrying about what people will do wrong. Can a bank teller steal your money and never deposit it? Sure, but it isn’t likely to happen.