Posted by Tim (Atlanta) on April 14, 2000 at 14:21:10:
You would want to change the name on the taxes, but I wouldn’t put that at the top of your list of things to do. Most people find your assets through a public record search at the courthouse. That almost always involves ownership documents (security deeds, warranty deeds, quit claims, etc…).So go ahead and change the taxes.
You do understand that all this is simply to put people off of your trail. If someone is determined enough, they can find out that you own the place. What you want do do is to discourage that liability lawyer from persuing a claim against you. Most often these people do a preliminary search for assets. This is where you want to show that you own nothing, and therefore would not be a good candidate to sue.
I have created and registered an LLC in Indiana to reduce my liability with a property that I’m renovating. I want to transfer title of this property to the LLC in lieu of having my name on the title. I believe this is a tax-free exchange but I need to know where to start the process and how to do it. It is a “simple” transfer from myself to the single member LLC (single member LLC’s are legal in Indiana). Any help would be appreciated.
Re: Title transfer from individual to LLC - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on April 12, 2000 at 13:09:19:
I transferred my rental properties to my LLC through a simple warranty deed. Since the rentals had non-qualifying assumable loans, the loans were transferred too. You may want to consult your tax advisor. Mine told me to sell the property to the LLC for my current cost basis. That way there is no tax on profit or loss.
I am looking to do the very same thing, except after the creation of the LLC, i want to create a land trust assigning the beneficial interest to the LLC. HOW DO WE DO THIS? DETAILS PLEASE! I MEAN…the property is in my name, so how does everything transfer, including the title, mortgage, insurance, etc… Will placing a property into an LLC drigger the DOS?
Re: re: i am one-upping you! - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on April 13, 2000 at 06:46:04:
If you want the full details, you need to buy Bill Bronchick’s course on land trusts or Bill Gatten’s material on the PACTrust™.
Here is the jist of what you can do. You create a LLC. Then create a land trust, assigning beneficial interest to yourself. Then sign a warranty deed from you to the land trust. Then sign the beneficial interest of the land trust to your LLC. This will get the property out of your name, but it will NOT get the mortgage out of your name. There is no way to do that other than to refinance or requalify with the lender. There are practically no banks or mortgage companies that will lend a newly formed LLC money to buy property without the primary owner of the LLC signing for the note. The only option there is to get hard money. You will be placing the property into a land trust, not the LLC itself, so the DOS should not be triggered. You understand that you are “selling” the property to the land trust, not the LLC. The original land trust should specify you as the benenficial interest, then you assign your beneficial interest to the LLC. The assignment of beneficial interest is where the actual ownership transfer occurs.
What you propose would protect your assets to a certain extent, but it would not relieve you from responsibility for the mortgage. The mortgage will still show up on your credit report. This is where many land trust purchases fail. Many owners are concerned about retaining responsibility for the mortgage when they no longer own the property. I know it is a matter of finding the more motivated people, but that is one of the problems when trying to sell the land trust concept to sellers.
I did not realize many of these details. I thank you very much for your input. us newbies need this!!
I can see your point about the seller concerns when the property is in a land trust. Good point. I do however, have one other question. I understand that the primary goal of the land trust is to hide assets. The mortgage will stay in my name…that is fine. However, what about the taxes. Can i put the taxes under the land trust name, or do i have to jkeepmy name on them? someone could go look up the tax records, right?