Land Trust?

[CountryGent]

I am curious if anyone has setup a land trust for their real estate holdings. As I understand it, it has some very good benefits, not the least of which avoiding probate and limited legal opacity. From what I can tell, however, the tax benefits are often overstated. I'm not seeing any downside, other than the time and money to set said up.

Anyway, I am just curious if anyone went that route. Thanks.

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[CoastRange57]

My wife's folks had their holdings in a trust. I did not see any great advantage to it. Their estate was less than 3 million, and my wife and her siblings portion was about half of that. If I was holding multiple income properties, I probably would look at it more, but our real estate holdings are our primary residence, and several lots and acreages in Central Oregon.

I am always buying or selling the smaller acreages and lots so the trust would be problematic in that aspect. Lawyers make money on trusts I know that.

 

[The Heretic]

Family farm was in a trust because eventually, after my grandparents died, it was then owned by 4 siblings.

When I retire and buy land and build on it, it will be in a trust for a couple of reasons; to make it easy for my daughter when I am gone, and to provide to privacy in the ownership records - the owner of record being "ABC Trust" or something like that.

You don't have to put all of your property in a trust - you can keep the investment properties outside of the trust if you are regularly flipping them.

 

[CoastRange57]

and to provide to privacy in the ownership records - the owner of record being "ABC Trust" or something like that.

Good point. I was tracking some ownership on some properties on line last night and ran into several of those. Some I was able to track down via Corporation Division records, others I have some more work to do.

 

[The Heretic]

Good point. I was tracking some ownership on some properties on line last night and ran into several of those. Some I was able to track down via Corporation Division records, others I have some more work to do.

My understanding is that a trust, properly setup, will have a point of contact (e.g., a lawyer's office) and the property records will only show the trust as the entity that owns the property (assuming the title is clear and in possession of that entity, and not mortgaged). Then to get to the owners, you would have to have the point of contact disclose who is on the trust, which they do not need to do without a court order or subpoena.

As long as the trust pays the property taxes and other records (utilities, etc.) name the trust, then privacy is more assured. Granted, the government can still find out who owns the property, but they have to go thru some hoops - private citizens could not without a court order.

IANAL and I could be wrong, but that is my understanding.

 

[CountryGent]

Thanks all for the replies. I won't bore you with the details, but plans are underway that will increase our landholdings. My main interest in a Trust to make sure my children inherit said with the least amount of governmental horsecrap as possible. Though whatever side benefits would be fine too.

Since posting, I found the firm that created our NFA trust also does estate planning, so I think I will reach out to them next week to see what help they can provide in this regard.

Anyway, thanks again friends.