Posted by Bill Gatten on March 04, 2000 at 17:07:11:
Yes.
I just forgot to send out the notice…sorry 'bout that.
Bill
Separate Land Trusts for Building and Property - Posted by bockco
Posted by bockco on March 01, 2000 at 20:32:27:
In a conversation with a financial planner they recommended separate landtrusts for the property and the building sitting on the property. They also recommended separate land trusts for separate floors in a commercial building. Is this a good idea or just a waste of time and money ?
Thanks in advance …
Re: Separate Land Trusts for Building and Property - Posted by MDonovan FL
Posted by MDonovan FL on March 02, 2000 at 10:13:55:
AFAIK A land trust can only be used for holding title to real estate. This includes any type of title rights including mortgages as mortgagee and mortgagor, lease contracts as leasee, equitable interest in a purchase contract or option, etc., but not any type of personal property.
Your planner is probably trying to achieve asset protection. This can be accomplished much easier by having two unrelated parties as beneficiaries of the land trust. The protection comes from the legal theory of partition. This theory says that personal property may not be partitioned (sold and the proceeds divided) to satisfy a judgement of a joint owner. Illinois case law (Breen vs Breen) has made this a precident, and most states look at Illinois precident for land trusts. It is also recommended that the trust agreement specifically state “The remedy of partition is not available to the parties of this agreement.” This will shield judgements coming from the beneficiares (including IRS, bankruptcy, divorce, etc.). In addition, the judgements and liens of the beneficiaries cannot attach the the land itself regardless of the beneficiaries’ relationships (First Federal v Pogue & Chicago Federal v Cacciatore).
The beneficiaries are liable for any negligence and an injury on the property will become a liability. The best way to protect your interest here is for each beneficiary to own a limited liability company that in turn holds the beneficial interest.
Set it up like this and you are bullet proof.
I am not an attorney, so check this out before using it.
Re: Well said - Posted by Bill Gatten
Posted by Bill Gatten on March 02, 2000 at 14:54:28:
Well said. And I agree.
Bill Gatten
Re: Well said - Posted by FJW
Posted by FJW on March 03, 2000 at 17:57:46:
Bill
Are you still doing telementoring sessions? I didn’t receive a notice this past Thursday.
FJW