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.
Are Land Trusts Still Effective?
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 attorney’s 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.
What States Are Land Trusts Used in?
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.
Who is the Best Person to Use as My Trustee for the Land Trust?
The best person to use as your land trust is someone you trust very much. 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. Although you do have this option, the institution may charge you a fee for using them whereas, the individual you are closest to, may now charge you anything because, after all, they are your best friend or close family member.
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.