When it comes to having a land trust with someone you are close to, using a power of attorney with a land trust is a good idea.
A power of attorney, or a POA, is someone who acts on behalf of you. This is a good thing to have in case you are out of town or you are unable to do anything for yourself at the moment. Some people who need a power of attorney may be your elderly family member who cannot think for themselves or do anything for themselves. However, a POA is also good for those who are running a business and are out of town a lot.
If you have a land trust with someone close to you, you may need a power of attorney in case you are out of town and need someone to sign documents for you or act on your behalf for something to do with your business.
If your attorney tells you that land trusts are not as effective as they once were, they are not educated enough on land trusts. Most attorneys don't know enough about land trusts for them to give you advice on using one. They most likely didn't get this education in law school. Land trusts are just as effective as they once were, if not more effective these days.
Land trusts are only used in six states as of now. These states include Illinois, Florida, Virginia, Indiana, Hawaii, and North Dakota. These are the only states that have statutes for land trusts right now. This may be why many attorneys don't know enough or, if anything, about them currently.
When choosing the best person to use as your power of attorney, trust is what matters. This could be your closest friend or family member. However, if you don't want to use an individual for your land trust, you also have the option to use an institution (which will usually charge you a fee for using them).
So, in short, it is a great idea to use a power of attorney for your land trust in case you need documents signed and you are either unable to do this because you are in the hospital or maybe even out of town on a business trip.
Hopefully, these questions and answers helped you learn a little more about land trusts and you are more educated on this effective tool for real estate investors.
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.
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