Posted by J.D. Stewart on March 23, 2006 at 19:08:27:
Thank you John. The next step is to find a lawyer for a Trustee, and decide which state to form the LLC. Suggestions, anyone?
J.D. Stewart
Land Trust questions - Posted by J.D. Stewart
Posted by J.D. Stewart on March 21, 2006 at 16:41:10:
I have properties in NE and AZ that I want to put into trusts, and then have an LLC be the beneficiary. I’ve read about the advantages of having an out-of-state Trustee. Should I find one here in NE that will agree to be Trustee for the AZ properties and vice versa? Maybe a person who doesn’t live in either state? I haven’t seen anyone address the issue of being served by publication, although I’ve spent hours in the archives.
How many properties can a person (or entity) be a Trustee for without running into some kind of bank/trust regulation?
I eventually want to move to AZ, and it will be anywhere from 3 months to a couple of years. Where should I form the LLC? One here in NE and later form a new one in AZ when I move? I plan on keeping at least one property in NE for the tax deductible vacation to inspect my properties. :>) The rest will be sold and 1031’d into AZ properties.
Thanks,
J.D. Stewart
Re: Land Trust questions - Posted by John
Posted by John on March 22, 2006 at 21:34:03:
My RE attorney is trustee for over 200 land trusts. Not just mine by the way.
Valuable info - Posted by John Merchant
Posted by John Merchant on March 22, 2006 at 23:50:50:
This is valuable info, as a good, licensed Trustee is in demand.
A lawyer is so watched and scrutinized that he/she can be one of the very best. With a lot more knowledge than the typical (in my experience) bank trustees, the lawyer can be a really useful and capable T’ee.
Where is your T’ee lawyer located? So folks nearby might inquire of you as to the identity so they can make their own contacts with the lawyer.
Re: Valuable info - Posted by John
Posted by John on March 23, 2006 at 20:34:07:
I am in Virginia. I spoke with my attorney about giving his name out as many have requested it. He really plans to retire in a couple years, and said he is not taking anymore new cliants. He says he is content with his business as it is now and does not want anymore stress or responsibility than he already has. So he asked me not to recomend him publicly. I must abide with his wishes.
Some infomation he said, I could pass on to those wanting to know. He charges a $100 per year as trustee for maintaince and $100 for taking or conveying title, and $75+ to do an anual report if required. He also recomended to ask attorneys that specialize in Real Estate and Estate Planning as they often do this for their customers. He also said some banks also did do this awhile back but have gotten away from it in recent years. He was suprised that so many had inquired about this, and suprised that more attorneys are not interested, because of the easy and steady income it produced. (hint to any attorneys reading this)
Sorry I could not be of more help on this one.
Re: Valuable info - Posted by John
Posted by John on March 23, 2006 at 06:31:03:
John,
I have recieved about a dozen e-mails concerning this. I am hesitant about posting his name without permission, it may also be taken as advertising. I will call him this morning and see if he will allow me to post his contact information.
I am sure there are attorneys all accross the country that would do this as well. The idea to use an attorney came by suggestion from Bill Bronchick. It has to do with annomity as attorney/cliant privilege. I hope this gets the readers thinking.
John
Re: Valuable info - Posted by J.D. Stewart
Posted by J.D. Stewart on March 25, 2006 at 22:29:14:
Thanks for trying, John. So, are there any trustworthy attorneys out there that want some trust business? How about a bulk rate? :>)
J.D. Stewart
Re: Valuable info - Posted by J.D. Stewart
Posted by J.D. Stewart on March 23, 2006 at 07:51:19:
That would be great if you could provide us with the info. I can’t find a lawyer yet that knows anything about them. The question still remains about an out-of-state attorney, though. Can the Trustee be served by notification in a local paper and not even realize that he’s being sued? How likely is that to happen?
J.D Stewart
Service on Trustee not simple deal - Posted by John Merchant
Posted by John Merchant on March 23, 2006 at 18:39:46:
Process of legal “service” on a trustee or other fiduciary depends on local state law, different in all states.
One of the good reasons for having an LLC or Trust hold RE is this complicated issue of service, and I know a number of very smart REIs who deliberately set up and pay for out-of-state LLCs, etc. to hold title…knowing if they get sued, it’s not going to be duck soup simple for the plaintiff to get quick service.
This area of law is known as “conflicts of law” and provides lots of legal fees to trial lawyers who throw everything they can into any lawsuit so as to frustrate the other side.
And there have been lots of epic battles over this very issue…how to serve that fiduciary, has he been,served, etc.
This is one of best reasons to hire a lawyer as the Trustee…he/she is normally very well versed in such procedural issues.