Posted by Barry (FL) on October 11, 2003 at 21:36:30:
I do it when I take a property sub 2 name the trust after the address or owner and am just doing a quick fix and reselling, not for keepers. Haven’t had a problem yet, but I also haven’t been audited either.
I would like to see the code you referred to though.
Thanks,
Barry (FL)
Is trust necessary if only holding for short time? - Posted by Ken_GA
Posted by Ken_GA on October 11, 2003 at 16:51:55:
Hello to all,
Just looking for some opinions (pros and cons) on this situation.
I will be buying a SFH sub2 at a fairly deep discount. The first is an old VA and there is no DOS in effect. There is a second to CitiFinancial.
The property only needs minor rehab ($8-12K) and I should be able to resell quickly. I anticipate 3-4 months since I’ll be selling below market (even with the repairs).
Is the value of putting the property into a trust negated by my short holding time? In other words, would it not be easier to just take title personally so as to avoid any hassle w/ my potential buyer and/or their lender that may arise if I were to have taken title to the property in a trust?
I look forward to your responses.
Ken_GA
Re: Is trust necessary ? - Posted by Lyal
Posted by Lyal on October 11, 2003 at 17:19:59:
Just my opinion here,
DOS isn’t the only reason to take title in a trust. There are liability issues (won’t protect you but might make an attorney “hesitate to take action”), anonymity, etc.
Shouldn’t be any problem with your seller if you take title in a trust or not. No explanation necessary, it just “happens” that way at closing (“to give you flexibility with the entity you want to use” if you must).
It’s so easy to do that there’s no reason not to use a Trust. One of those things that you’d rather have and not need rather than the reverse.
All the best, Lyal
Also by putting it in a trust… - Posted by Barry (FL)
Posted by Barry (FL) on October 11, 2003 at 19:32:23:
You can avoid the transfer taxes on the sale from the seller to you and just pay them when you sell. It’ll save you a few bucks.
Hope This Helps,
Barry (FL)
Re: Also by putting it in a trust… - Posted by Jonathan Rexford
Posted by Jonathan Rexford on October 11, 2003 at 20:53:51:
Not so. Sure you may get away with it when they transfer the Benificial interest in FL but its a transfer of ownership. The point being is you don’t want to be on the end of owing the Department of Revenue (for Florida) some funds. I wish we could get away from it but if you ever been audited you would know. I will post the Code later from the Florida Statue. But then of course if you have know problem then its okay.