Land Trusts - Posted by Keith

Posted by Jonathan RexfordFL on October 12, 2003 at 12:10:24:

This property that I am in was but the other property that I was in wasn’t.

Land Trusts - Posted by Keith

Posted by Keith on October 11, 2003 at 06:10:53:

I reside in FL. I want to put my personal residence into a land trust. From what I have read so far, the process to do so is fairly straightforward and simple.
First question: can someone with personal experience verify this for me?
In so doing, the result is that I have hidden this asset from all. My name no longer shows up as the owner of record. Is this accurate? Does a land trust make a property judgement proof?
Can other properties, such as vehicles, also be put into some type of trust, thus offering the same privacy and protection?
What are the negatives to land trusts? Are there any downsides to this tool?
Thank you.

Re: Land Trusts - Posted by Joseph

Posted by Joseph on October 13, 2003 at 10:34:53:

Keith,
If you e-mail me privately, off the board, I can give you the FACTS. I do Land Trusts for clients all the time. In my opinion, in Florida, I do not rtecommend putting a personal residence in a Land Trust, unless of course you have some other very good reasons, that extent beyond the Homestaed protection.

Joseph

Re: Land Trusts - Posted by Terry (Houston)

Posted by Terry (Houston) on October 11, 2003 at 10:10:05:

You might want to think about the protection your homestead law is providing your personal home in Florida. Think O J Simpson.

I am not sure how that would impact your homestead protection.

Terry (Houston)

Re: Land Trusts - Posted by Rich Hyams

Posted by Rich Hyams on October 11, 2003 at 07:01:38:

Unfortunately, putting property that you already own in trust does not do that much. Furthermore, you can’t be trustee for property you already own.

Think about it, your name is already on the chain of title, transfering it into a trust won’t do anything about that.

You need to buy a new property into a trust in order to really benefit from the snynominity(sp) that trust afford.

They are a real good tool to hide assets when you own many properties, an attourney will better be able to explain the benefits of a living trust Vs a land trust in your particular situation.

Re: Land Trusts - Posted by Keith

Posted by Keith on October 11, 2003 at 10:20:54:

Terry, yes, the Homestead protection is quite good in FL. Some say too good. However, it certainly doesn’t offer any privacy, and I don’t know what, if any, protection it offers against judgements.

Re: Land Trusts - Posted by Keith

Posted by Keith on October 11, 2003 at 08:36:02:

So once I have taken title in my name, putting it in a land trust is of no benefit? Surely there must be a legal way that a homeowner can protect their personal residence from prying eyes.

Re: Land Trusts - Posted by Rich Hyams

Posted by Rich Hyams on October 11, 2003 at 11:59:22:

That is another problem. Although I have heard that there is a way around it, I don’t know if there really is or how its done.

A home in a trust can not get Homestead. You don’t own the property. The trust owns it, you only own the beneficial interest in the property. The property is not eligible for homestead.

Re: Land Trusts - Posted by Hank Fl

Posted by Hank Fl on October 12, 2003 at 20:04:18:

Buy Mark Wards’a land trust book and you’ll see why Rich Hyams may be wrong.

You aren’t in TN or LA are you? Because the land trust thing there is not like it is in FL or IL or the 46 other states.

Bronchick has good stuff too on trusts yoo, but he has the whole shabang w/tapes and it’s costs more $.

Same with Dyches Byford.

I hope I spelled his name right.

Re: Land Trusts - Posted by Wayne-NC

Posted by Wayne-NC on October 11, 2003 at 10:18:10:

Prying eyes should not be the only issue here. You can’t stop people from looking but you can have them see nothing worth taking. Maybe you could look into mortgaging to the hilt and use the money to BUY another property using a trust. Then you can follow Rich’s advice. If one tries to sue for your home they will see no equity and you will appear broke. These ideas are written in books. Also, look into an umbrella policy to cover liability and it comes with it’s own defence team.

In Florida, you still get… - Posted by Barry (FL)

Posted by Barry (FL) on October 11, 2003 at 14:54:01:

The exemption. I will quote from Mark Warda’s Land Trusts in Florida, 6th edition:
"There has been some confusion among property appraisers regarding the ability of a trust beneficiary to get the homestead exemption. This has resulted in four rulings from the Florida Attorney general’s office (AGO), AGO 74-313, AGO 76-204, AGO 90-70 and AGO 94-50 and one rule in the Florida Administrative Code, (FAC) Section 12D-7.011.
The current state of the law is that if a beneficiary is entitled to “use and occupancy” of the property under the terms of the trust, then a homestead exemption will be granted. However, different property assessors may have different interpretations of what they need.
Prior to setting up a trust for which you want the homestead exemption, you should speak with someone in the appraisers office and find out exactly what they will require. A land trust should not be recoreded, so if this is what they want you should ask if there is any other alternative, such as putting a statement on the deed that the beneficiary is entitled to the use and occupancy of the property.

Spend the $29.95 and buy the book. Well worth the investment!

Hope This Helps,
Barry (FL)

Re: In Florida, you still get… - Posted by Terry (Houston)

Posted by Terry (Houston) on October 11, 2003 at 16:05:16:

Don’t suppose you know what it says about texas do you??? :slight_smile:

Where can I get his course again?

Terry (Houston)

Re: In Florida, you still get… - Posted by DavidV

Posted by DavidV on October 13, 2003 at 24:33:29:

You might want to go to your tax assessors office and find a head guy/girl there and they should be able to tell you. At worst they may want you to file something proving the trust…Like a “certificate of trust” listing grantor, trustee, address, termination date, etc. without listing beneficiary. Wouldn’t hurt to get any decisions in writing.

Re: In Florida, you still get… - Posted by Barry (FL)

Posted by Barry (FL) on October 11, 2003 at 19:37:27:

Not sure if he has one on Texas but his publisher is Sphinx Publishing: www.sphinxlegal.com
His website is: http://www.markwarda.com/

Hope This Helps,
Barry (FL)

Re: In Florida, you still get… - Posted by Jonathan Rexford

Posted by Jonathan Rexford on October 11, 2003 at 20:58:25:

I have my personal home into a trust. Basically I had to place certian language in the trust document to make my property appraiser happy. I have it at the office. We did it with an addendum of trust and its in there file. It does not identify the benificiaries in the document. But it does show the transfer from my personal home into the trust itself.

Re: In Florida, you still get… - Posted by Keith

Posted by Keith on October 12, 2003 at 06:07:36:

Jonathan, was your personal residence in your name previously, prior to placing it in the trust? I’m getting the impression that since this is what I will be doing, it’s all for naught.

Re: In Florida, you still get… - Posted by Barry (FL)

Posted by Barry (FL) on October 11, 2003 at 21:39:34:

I think what Warda was alluding to was that it depends on what county. Each appraiser would have a different interpretation of the code just as judges interpret the law differently. That’s why the advice of go direct to the horses mouth and ask the appraiser for that county.

Barry (FL)