When it comes to setting up a land trust, the best time to set one up is as soon as you purchase your property. The reason for doing this is to keep your name off the property records. Not only will this protect your property from creditors, but it will also keep them from using the Uniform Fraudulent Conveyance Act to gain your assets.
When you are buying a property, form a land trust with either a private trustee or an institutional trustee immediately 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 while, there won't be a record of it for long. Still, 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 how they work for privacy of ownership.
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 trustee. Choosing one can be a little bit difficult, however, it is the most important step. The trustee needs to be someone you can trust.
Who do you choose, a friend or family member, or 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 trustee, 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.
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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