Many landowners often ask whether or not they should form a land trust with multiple beneficiaries. Although you might think they should be able to do something like this, the answer to this question is simply no.
Why? The main reason for this is because the legal system sees this as forming partnerships. You shouldn't even form a land trust with your spouse or partner in life either. According to the legal system, forming a land trust with more than one person is forming a partnership for the land, and the law says each partner assumes liability for the other partner.
The first step in forming a land trust is choosing someone close to you—someone like a really good friend or a close family member. Whoever you choose should be someone you can trust for this. After choosing someone for the land trust, you then need to fill out two forms. You can have an attorney help you if you need to or you can do this yourself by downloading the forms online. The first form you need is called a land owner to land trust agreement. The second one is the deed of your property you are putting into the land trusts' name as your beneficiary.
There are a few different reasons to form a land trust with someone closest to you. A few of the reasons include the following:
In short, you wouldn't be gaining any benefits if you choose to have more than one beneficiary for your land trust. All of the reasons above are good reasons to form a land trust.
Although you do not have to consult with an attorney for the use of a land trust, it is recommended as to ensure you fill out the right forms and fill them out correctly. Also, make sure everyone involved with the trust gets a copy of each form filled out.
Scott Royal Smith is an asset protection attorney and long-time real estate investor. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth.
Ready to know more than your attorney? You'll get over two hours of instruction combined with five ebooks to teach you how to best structure your real estate investments.
Join thousands of real estate investors in all 50 states as they enjoy exclusive content, special promotions, and behind-the-scenes access to me and my guests. No spam, ever. Just great stuff!