Posted by Bill Young on June 14, 2001 at 22:40:09:
Ben, there are a couple of difficulties with your comments on the trust. One of the benefits of the title holding land trust, as opposed to a plain living trust is the non-partitionability of the beneficiary’s interest in the property. Since the trustee’s actions are directed by the beneficiary, a judgment creditor conceivably could bring an action against the beneficiary/trustee to disolve the trust or relinquish the property to him as satisfaction of the judgment.
Ideally the trustee should be a corporation, preferably a non profit bonded one at that. This way, the trustee cannot die and tie the property up in his estate, the trustee’s personal or financial problems cannot attatch to the title of the property, he is bonded in case of problems. Also, having a non-professional trustee can affect the very integrity of the trust, vis a vis creditors etc.
There seems to be a number of do-it-yourself trust creators around, but they should double check the rules before proceeding. Check with Bill Gatten at landtrust.net and/or Bill Bronchick at legalwiz.com
Hope this helps.