The legal stipulation is that TN per state law does not recongnize what is called the doctrine of equitable conversion so in essence the beneficial interest held in the trust is seen as realty not personalty so the asset protection features are not there from the state perspective.
You still get the other benefits of the trust since you are follwoing federal law if done legally correct.
If I can help further feel free to call me at 702-400-7632.
Do some reading on title holding land trusts in regards to TN and LA laws on them.
Recently I read a posting by William Bronchick (excerpt following) concering Land Trusts in Tenneesse. I along with other investors have been using Land Trust here for quite some time. Are there any particular consequences that we are unaware of? Or is it simply that Land Trusts have not been challenged and upheld in the States legal system? Any insight you can offer will be helpful.
“In nine states (AL, FL, GA, HI, IL, IN, ND and VA), land trusts are specifically recognized by statute. In most other states the validity of land trusts are supported by common law and general trust principles (land trusts are not recognized in TN & LA).”
What would be the best approach to investing, protecting privacy, and other legal issues in TN? I take it that with the state’s view on land trusts that the transfer tax is unavoidable. Is there any other state specific info anyone might care to share? I’m asking here because I’m not having much luck finding investors in the Knoxville area.
Thanks,
Steve