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LLC’s and land trust ?s

This topic contains 25 replies, has 0 voices, and was last updated by Avatar of infinity infinity 10 years, 6 months ago.

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  • #5574
    Avatar of infinity
    infinity
    Member

    Can my LLC participate in any way shape or form in a land trust. Act as trustee or beneficiary?

    #29023
    Avatar of homesavers
    NULL
    Member

    Sure your LLC can act as a Trustee or a beneficiary. You doing short term or long term deals? I assume you are doing NARS EHT Trusts?

    #29024
    Avatar of infinity
    infinity
    Member

    Actually Larry was actually going to do most of my work with you.
    Jesse from the small western town of Texas El Paso

    #29025
    Avatar of homesavers
    NULL
    Member

    Who is Larry?

    #29026
    Avatar of infinity
    infinity
    Member

    Ok I guess I’m mistaken, sorry. Thanks for the answer though. Someone from another forum led me to believe that you should either create a LLC or land trust to take over a home. One or the other and that an LLC couldn’t be the beneficiary of a trust of this nature.

    #29027
    Avatar of homesavers
    NULL
    Member

    You can hold a property in an LLC or a Land Trust. Most Attorneys like LLC’s better. You can have an LLC act as a beneficiary. Who ever told you was wrong. Maybe they thought you wanted to have the LLC be the Trustee and the Beneficiary. Who knows.

    #29028
    Avatar of infinity
    infinity
    Member

    Thanks for your help homesavers. I’ve been getting a lot of conflicting information on this topic. I definately believe that your response is the right one. I just couldn’t understand why many posts on the topic claim LLCs can’t be beneficiaries of a trust. Now I can finish filling out this offer without much worries.

    #29029

    An LLC is the best beneficiary of a Title Holding Land Trust.

    #29030
    Avatar of mtnwizard49
    mtnwizard49
    Member

    Homesavers: Sure your LLC can act as a Trustee or a beneficiary.

    USING ONE???S OWN CORPORATION OR LLC

    Would create a merger of title, invalidating the trust, should it be challenged in court as not being a bona fide land trust (see N.C. A.G.O. vs Russell and Dianne Barberio 2005)

    A privately or closely held corporation would not charge legitimate fees and therefore would not likely be seen by the courts as a bona fide holding company, whose business it is to hold titles in trusts and charge fees commensurate with industry standards.

    One???s own corporation would not be seen by a co-beneficiary as a mutually trustworthy, and wholly unbiased third-party holding (escrow) entity. Such a bias would not be in the best interests of co-beneficiaries. As well, using one???s own business entity would create a merger of title invalidating the land trust model.

    #29031
    Avatar of infinity
    infinity
    Member

    USING ONE???S OWN CORPORATION OR LLC

    Would create a merger of title, invalidating the trust, should it be challenged in court as not being a bona fide land trust (see N.C. A.G.O. vs Russell and Dianne Barberio 2005)

    So would this also stop an LLC from acting as a beneficiary. I understand it not working from the trustee standpoint, but if i have a non-biased 3rd party act as trustee would that still be a problem?

    #29032

    So would this also stop an LLC from acting as a beneficiary. I understand it not working from the trustee standpoint, but if i have a non-biased 3rd party act as trustee would that still be a problem?

    Mr Moyes writes in this same thread:

    An LLC is the best beneficiary of a Title Holding Land Trust.

    #29033
    Avatar of infinity
    infinity
    Member

    Clearly j_r_. Just wasn’t sure whether mtnwizard49 was refuting that claim. I believe he meant your LLC shouldn’t act as trustee, but could have also meant the LLC should in no shape or form participate in a trust at all.

    #29034
    Avatar of buzzbox
    buzzbox
    Participant

    I think we have to separate trustee and beneficiary here as the thread started that way.

    If only the trustee is being considered follow the logic provided by Gary, if only the beneficial interest is of concern then take Scott’s suggestion.

    If you want your created entity (LLC) to hold both a beneficial interest and act as trustee in the same trust, “merger of title” could become an issue if a dispute arises in a multiple beneficary trust, but probably of less concern if the LLC is and will remain the only beneficiary.

    #29035
    Avatar of scott
    scott
    Member

    @Scott_L._Moyes wrote:

    An LLC is the best beneficiary of a Title Holding Land Trust.

    If I remember right Scott likes his lawyer to be on the paperwork so if a court orders the name of the beneficary they will get the LLC name and the lawyers name but not his because of client confidenciality.

    #29036
    Avatar of mtnwizard49
    mtnwizard49
    Member

    No problem holding a beneficiary interest as an LLC. Allowing your LLC to be the Trustee is a definite NO-NO.

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