When it comes to setting up a land trust, the best time to set one up is right away. This means setting it up as soon as you purchase your property. The reason for doing this is because this way, your name will never be on record that you own anything. Not only will this protect your property from creditors, but it will also keep them from using the Uniform Fraudulent Conveyance Act on you to gain your assets.
Once you buy your property, have it in your name at first and then form a land trust with either a private trustee or an institutional trustee, whichever you prefer, right before you close on the property. This is the best way to set the land trust up to keep your ownership private.
You will need to let the trustee’s attorney know about you setting up the land trust before doing so. Although the property will be in your name for a little bit, and there will be a record of it, but not for long and you will still be able to benefit from having a land trust for your property and assets. If you don’t know much about land trusts and want to learn more, keep reading to learn all there is to know about them and how they work for privacy of ownership.
How Does a Land Trust Work?
When it comes to setting up a land trust, the first thing you need to do is to choose the one who will be your land trust for you. Choosing one can be a little bit difficult, however, it is the most important step before creating one. The reason it is the most important step is because you need someone you can trust. Who do you choose, a private one, such as a friend or family member, or do you decide to go with a bank or other institution? This can be hard at first but once you weigh the pros and cons of each choice you have, you will have a much better way to choose the right one for your property and most important assets.
Once you choose who will be your land trust, you will then need to have your attorney draw up the documents for you. You can also do this yourself by downloading them from the Internet, printing them out, and having the individual or institution fill out and sign the documents. The documents you need include the agreement between you and your trustee, and then a copy of the title of the property or assets. Once you have these documents, you and your land trust will have to fill them out and sign them. Now you have your land trust which protects you and provides you with the privacy you need and want.