Using an out-of-state Trustee for Land Trust....... - Posted by Nate Tyler

Posted by B.L.Renfrow on May 23, 2000 at 18:33:19:

Hi Dave,

Let me say first, I am no expert in this area, as most of my experience is in lease-options. However, I am doing a land trust deal right now, and have looked specifically at the co-trustee situation.

You are correct in that the trust itself does NOT file a return. However, in certain situations, the TRUSTEE is required to file an informational return.

Unfortunately, I am away from home until tomorrow, where all my references are located, and the specifics excape me at the moment. If no one posts a more complete response before then, I will look it up when I get back and post the details.

Brian (NY)

Using an out-of-state Trustee for Land Trust… - Posted by Nate Tyler

Posted by Nate Tyler on May 22, 2000 at 14:46:57:

I’m in the process of setting up a Land Trust to title a multi unit building we’re purchasing.

The person I’d like to be the Trustee lives out of state.
He’s not the easiest person to get ahold of. This is an advantage, but also a slight disadvantage.

My concern is with all the documentation that will need to be executed by the Trustee…deed, closing documents, property management docs, etc.

Is it possible for me to get a Power of Attorney and sign the docs in his behalf? Is there a better way to deal with this?

Thanks in advance…


Co-trustee addendum - Posted by B.L.Renfrow

Posted by B.L.Renfrow on May 22, 2000 at 21:26:40:

Just appoint yourself or entity as co-trustee with power of management, after the deed into the trust is recorded.

If the co-trustee is also a beneficiary, this also exempts the original trustee from IRS reporting or tax-return filing requirements.

Brian (NY)

Re: Using an out-of-state Trustee for Land Trust… - Posted by Brad Crouch

Posted by Brad Crouch on May 22, 2000 at 15:04:32:


Just have him sign a couple of times on a blank piece of paper. Then get a rubber signature stamp made up. Use as necessary.

Or make yourself a “co-trustee” with the same powers and duties.

Don’t record this “co-trustee” document.


Re: Co-trustee addendum - Posted by Dave T

Posted by Dave T on May 23, 2000 at 14:28:11:

What tax return is filed for a land trust? I am under the impression that a land trust, like a revocable living trust, is not a tax entity and therefore no tax return is required for the trust.

Would your please explain your comment so that I can clear up my confusion?