What is a Land Trust A Land Trust is an instrument used to
separate ownership of property into two parts control and benefits air yeezy for sale . There are
generally three parties (sometimes 4 which I will talk about later) which are
described by the Trust the Grantor, the Trustee and the
Beneficiary.
GrantorThe Grantor is the party that transferred the
property into the Trust Penny
Hardaway Shoes. The transfer can be at the time of purchase or at anytime
during the life of the ownership.
When the Grantor deeds the property to
the Trust, they no longer have any control nor do they derive any benefit from
the property these aspects of ownership pass to the Trustee and Beneficiary
respectively cheap foamposites
.TrusteeThe Trustee controls the assets of the Trust.
Usually, the
Trustee is given this control with severe restrictions on when they can exercise
this control nike dunks for sale
. Specifically, the Trustee is usually given the ability to deed the
property from the Trust to another entity but they are only allowed to sign such
a deed with written instruction from the Beneficiary.
To do so without
such instruction is embezzlement and fraud. The Trustee can be either a person
or a business entity (corporation, LLC, etc.) and should be deemed trustworthy
by the Beneficiary.The Trustee serves at the whim of the Beneficiary. If the
Beneficiary wants a different person or entity to fill this role, they can fire
the current Trustee and install a new one. The method to do this is described as
part of the Trust document. Likewise, the Trustee could resign. Again, this
procedure should be part of the Trust document.BeneficiaryThe Beneficiary
derives all of the benefit from the assets of the Trust. This means that any
rents collected or proceeds from the sale of the assets will ultimately be
directed to the Beneficiary. The Beneficiary can be made up of any set of
persons and corporate entities in any percentage of ownership (i.e. Bob Smith
could have 25% beneficial interest and Smith and Sons, LLC could have the other
75%).The Beneficiary can also be changed during the life of the Trust. To
continue the example above, Bob Smith could sell his beneficial interest in the
Trust to Sally Brown. This is considered to be the sale of personal property
rather than real property because the property continues to be owned by the
Trust and what is transferred is only an interest. Again, the method of
documenting the transfer of beneficial interest should be described in the Trust
document.Depending on the laws in your jurisdiction, the change of Beneficiary
may still be a taxable event (i.e. transfer taxes or excise taxes). However, the
paying of this tax does not have to reveal the identity of the
Beneficiary.DirectorThe Director is the 4th role that is sometimes used with a
Land Trust. When used, the Director is responsible for directing the Trustee and
often the Trustee is to listen only to the Director and not the Beneficiary.
This is useful when the Beneficiary is a collection of persons or entities and
the Director is assigned to be the sole voice for them all. Another use would be
if you want to give the benefit of a property to family members but you want to
stay in control.How Are Trusts CreatedA Trust is created in the same way that a
contract is created. A document is created that describes the Trust and the role
of each party in the Trust. The Trust document does not need to be filed with
the government nor does it need to register with the IRS. The Trust can be named
in any way that the creator of the Trust wants. For example, a Trust could be
called Smith Family Trust or 123 Main St Trust.Why We Use Land TrustsTrusts
provide anonymity and continuity.The anonymity is gained because of how counties
record the ownership of property. When property is owned by the Trust, the
county records show the ownership listed as the name of the Trust. Sometimes the
name of the Trustee at the time of transfer is also listed as part of the
ownership record.We never want the Beneficiary listed in the county record, so
we dont file the Trust documents with the county. They should not demand them,
but if we give them, they will record them. Remember that anything recorded is
available to the public.Additionally, our Trust document directs the Trustee to
never reveal the identity of the Beneficiary without a court order.The
continuity is also a result of the countys method of recording ownership. Since
the property is owned by the Trust, the Trustee and Ben