I am looking to buy land this spring. Sleeping in a ford escort wagon is starting to wear me out. If I can buy some land I will primitive camp till I can build a shack. But on to the question. I don't want the land in my name or any relitives either. I am thinking about a trust. Do I need the trust established before I buy or just before I pay the final payment. I know everyone will say to see a lawyer but funds are short. This land will be owner financed. Or should I be looking at a llc to do this. Thank for any help.
Demented Guy
Laws vary by state as do tax situations.
Buying land is a big investment, important endeavor. IMHO, it's best to pay for expert advice so you're right-and-tight from the git-go.
DH and I have done property purchases both ways and, in the end, having pros advice was worth what we paid.
Good luck!
Buying land is a big investment, important endeavor. IMHO, it's best to pay for expert advice so you're right-and-tight from the git-go.
DH and I have done property purchases both ways and, in the end, having pros advice was worth what we paid.
Good luck!
I'd pay close attention to the 'owner financing'.
There have been cases where 'land contracts' or 'lease purchases' have been voided after years of payments, when the original seller passed, and the heirs declined to honor the 'contract'. (even to family members) The time a handshake was honored is long past!
A lawyer fee is cheap compared to what a poorly written contract can cost you in the long run.
Check around, some rural attorneys specialize in these type of transactions and have a set fee and a pile of mimeographed sheets ... it may not be as much as you think. I remember one in WV that was $35.
Do NOT use sellers atty!
There have been cases where 'land contracts' or 'lease purchases' have been voided after years of payments, when the original seller passed, and the heirs declined to honor the 'contract'. (even to family members) The time a handshake was honored is long past!
A lawyer fee is cheap compared to what a poorly written contract can cost you in the long run.
Check around, some rural attorneys specialize in these type of transactions and have a set fee and a pile of mimeographed sheets ... it may not be as much as you think. I remember one in WV that was $35.
Do NOT use sellers atty!
You are wasting your time. Simply buy in your own name and avoid hassles. No matter how you set it up there is always a trail. Plus in the future it can make sale of the property a nightmare if you complicate title.
If you are worried about asset seizure because of past issues, a owner carried contract could be the ticket if it is does not need to be recorded with the State until you pay it off. In that case it simply is a written contract between you and the owner. No one else would know about it.
If you are worried about asset seizure because of past issues, a owner carried contract could be the ticket if it is does not need to be recorded with the State until you pay it off. In that case it simply is a written contract between you and the owner. No one else would know about it.
I have bought several pieces of land into a corporation (LLCs) and several into a trust. Not sure why you would specifically want a trust structure instead.
If you are paying cash you can do whatever you want and you dont have to have anything in place until the initial sales contract is being signed at which point the entities signing need to exist.
If you are trying to get a loan it is harder to do with corporate entities because your entities dont have any assets and can just shut down with the bank holding the bag.
We like putting properties into corporate entities because that way people cant just search on our names in the appraisal district to look up our address etc.
The main reason is for liability and estate planning purposes though.
If you are paying cash you can do whatever you want and you dont have to have anything in place until the initial sales contract is being signed at which point the entities signing need to exist.
If you are trying to get a loan it is harder to do with corporate entities because your entities dont have any assets and can just shut down with the bank holding the bag.
We like putting properties into corporate entities because that way people cant just search on our names in the appraisal district to look up our address etc.
The main reason is for liability and estate planning purposes though.
What kind of wrong turn did you make it life to be sleeping in a ford escort and not able to put land in you name, Is there some sort of court judgment against you or are you just trying to lay low? I will say Im interested in your life life and would like pictures to show how you get alone leaving in your car. I always wanted to do something like that short term.
You don't want to live in a car, trust me. A van or a pickup would be much better. I'm. 5' 6" and can't even stretch out in my escort wagon. Plus it's colder than a one legged Hooker. I'm sorry I don't own a camera, I have very few possessions. After the army, I haven't had much luck on the steady job. I just finished ringing the bell for the salvation army, that job was from the day after thanksgiving till Christmas eve. I'm looking for owner financed land in Arkansas or Missouri, some has payments as low as 200 a month. Cheaper than any rent I can find. Just trying to stay off the radar of past relations and the law Bates homeless or people who would rather live in their car or a shack on cheap land.
we hold property in an LLC , because we have tenants and they have visitors
the purpose is if someone is hurt their , it is the LLC they can sue, and take its assets ,(which are the properties,, or attach them with a judgement
But they cannot touch our other private assets,
However if they, or someone else sue us personally, on another matter , unrelated, say we run them over with a bicycle or beat them up.. they can take the LLC From us as it is one of our assets,
So we are protected from the acts or negligence of the LLC, altho with a sole owner, sometimes courts will still hold the owner responsible personally ,
But the LLC is not protected from the personal acts of the owner
whereas you appear to have no assets to protect, I do not see how an LLC will protect anything
Should someone drown in an unfenced pond on your property,, your other assets, had you any , might be protected , unless the court held that you as sole owner , were in fact the LLC, but still , what could they take ?
well if you were employed , they might get a piece of your income periodically,, I know a guy who will be giving up income for the rest of his days ,just like alimony, but that was because He himself crippled a guy with his uninsured car. If Charlie had owned something in an LLC, they could have taken that,,
this is not legal advice, I am not licensed to give that, it is just common sense and available on the internet or in books
in short, an LLC protects your other stuff from "acts" of the LLC
It does not keep the LLC safe from confiscation due to a claim against you
Holding the property in your name, IF it is your residence, may in some homestead act states protect it from attachment or seizure,, they would have to go after something else of yours,, your paycheck, bank account or your car etc
if someone wants to find you own it, they would need to suspect you do, as in follow you or something,, if they suspect you may own property in a certain area or areas, all they need to do is search the tax records,, IF they think you may have hidden it under an LLC name, they can search public records of LLC filings for who owns the LLC..
(which btw you must publish in the local newspaper for a period stating who you are , its name and )that you are establishing it
if it were me, I would see if your state does give homestead or domiciles protection from attachment and judgements in civil suits,, and if so, I would take it in my name,,
of course if you owe alimony or child support, I do not know if that would work.
of course,, if you can manage to buy property, maybe you can buy an older high top van.....just sayin, but a cabin on the property would be far better !!! Make you easier to find tho...
you might want to just take a 99 year lease on the property,, he still gets monthly money from you , but does not take the land out of his estate.., then you do not own it, no one can take what you do not own,, there will be no title, survey or closing costs,, very low attorney fee.. but of course if the owner (who would be your landlord) is sued, they could take it from him,, but your lease might (or might not) remain in force.
of course you do not own it,, never will... but you have all the rights granted in the lease, basically the rights of an owner
however if you build a cabin there, technically he is the owner and will get it and any other improvements when the lease is up in 99 years,, but you use it like an owner in between---UNLESS you fall behind n the payments,, that is a real consideration for you,, miss a couple payments and get evicted and he gets your cabin.
these are just ideas, not legal advice, get more definitive information from a lawyer,, the hour will be worth the $500,, but make sure you get yor moneys worth by having distinct questions prepared for him in advance,, you do not want to be rambling at 8 bucks a minute
the purpose is if someone is hurt their , it is the LLC they can sue, and take its assets ,(which are the properties,, or attach them with a judgement
But they cannot touch our other private assets,
However if they, or someone else sue us personally, on another matter , unrelated, say we run them over with a bicycle or beat them up.. they can take the LLC From us as it is one of our assets,
So we are protected from the acts or negligence of the LLC, altho with a sole owner, sometimes courts will still hold the owner responsible personally ,
But the LLC is not protected from the personal acts of the owner
whereas you appear to have no assets to protect, I do not see how an LLC will protect anything
Should someone drown in an unfenced pond on your property,, your other assets, had you any , might be protected , unless the court held that you as sole owner , were in fact the LLC, but still , what could they take ?
well if you were employed , they might get a piece of your income periodically,, I know a guy who will be giving up income for the rest of his days ,just like alimony, but that was because He himself crippled a guy with his uninsured car. If Charlie had owned something in an LLC, they could have taken that,,
this is not legal advice, I am not licensed to give that, it is just common sense and available on the internet or in books
in short, an LLC protects your other stuff from "acts" of the LLC
It does not keep the LLC safe from confiscation due to a claim against you
Holding the property in your name, IF it is your residence, may in some homestead act states protect it from attachment or seizure,, they would have to go after something else of yours,, your paycheck, bank account or your car etc
if someone wants to find you own it, they would need to suspect you do, as in follow you or something,, if they suspect you may own property in a certain area or areas, all they need to do is search the tax records,, IF they think you may have hidden it under an LLC name, they can search public records of LLC filings for who owns the LLC..
(which btw you must publish in the local newspaper for a period stating who you are , its name and )that you are establishing it
if it were me, I would see if your state does give homestead or domiciles protection from attachment and judgements in civil suits,, and if so, I would take it in my name,,
of course if you owe alimony or child support, I do not know if that would work.
of course,, if you can manage to buy property, maybe you can buy an older high top van.....just sayin, but a cabin on the property would be far better !!! Make you easier to find tho...
you might want to just take a 99 year lease on the property,, he still gets monthly money from you , but does not take the land out of his estate.., then you do not own it, no one can take what you do not own,, there will be no title, survey or closing costs,, very low attorney fee.. but of course if the owner (who would be your landlord) is sued, they could take it from him,, but your lease might (or might not) remain in force.
of course you do not own it,, never will... but you have all the rights granted in the lease, basically the rights of an owner
however if you build a cabin there, technically he is the owner and will get it and any other improvements when the lease is up in 99 years,, but you use it like an owner in between---UNLESS you fall behind n the payments,, that is a real consideration for you,, miss a couple payments and get evicted and he gets your cabin.
these are just ideas, not legal advice, get more definitive information from a lawyer,, the hour will be worth the $500,, but make sure you get yor moneys worth by having distinct questions prepared for him in advance,, you do not want to be rambling at 8 bucks a minute
1) Check your state laws. In some states, like mine, trusts are entirely private. In others, they must be recorded at the county courthouse. If trusts are not private, check for registration terms and fees.
2) Check your state's stance on perpetuities. A perpetuity is a trust that is allowed to continue forever, thus postponing indefinitely the actual transfer to the beneficiary(ies) the assets principal within the trust. This can be huge for deferring forever the transfer and inheritance taxes.
3) Trusts are a legal fiction. As such, they do not have all of the same rights under natural law that a natural person would have. This distinction is meaningless, unless you know and intend to press your natural rights against a legal system that has, at best, purposefully forgotten them, and at worst, is actively hostile toward them.
4) When you sign the purchase contract, in the line where you list the buyer, write in "Demented Guy, or assignee." This means that either you, or anyone to whom you assign your rights under the contract, may and must fulfill the contract. It is such a standard tool that the seller will be more surprised if you don't use it. You may also add a non-uniform covenant above the signature line stating that the buyer reserves the right to assign the contract.
5) On the signature line, sign, "by: Demented Guy." This is because you are signing on behalf of a legal fiction, be it your trust, or the legal fiction that the government has created for you as your proxy. In this wise, you clarify that you are undertaking the action in your capacity as a natural person.
6) Check your state's laws and practice book on litigation. In many states, a settlor/trustee may not represent the trust in court, meaning that you would have to hire an attorney to defend even the most frivolous lawsuits.
2) Check your state's stance on perpetuities. A perpetuity is a trust that is allowed to continue forever, thus postponing indefinitely the actual transfer to the beneficiary(ies) the assets principal within the trust. This can be huge for deferring forever the transfer and inheritance taxes.
3) Trusts are a legal fiction. As such, they do not have all of the same rights under natural law that a natural person would have. This distinction is meaningless, unless you know and intend to press your natural rights against a legal system that has, at best, purposefully forgotten them, and at worst, is actively hostile toward them.
4) When you sign the purchase contract, in the line where you list the buyer, write in "Demented Guy, or assignee." This means that either you, or anyone to whom you assign your rights under the contract, may and must fulfill the contract. It is such a standard tool that the seller will be more surprised if you don't use it. You may also add a non-uniform covenant above the signature line stating that the buyer reserves the right to assign the contract.
5) On the signature line, sign, "by: Demented Guy." This is because you are signing on behalf of a legal fiction, be it your trust, or the legal fiction that the government has created for you as your proxy. In this wise, you clarify that you are undertaking the action in your capacity as a natural person.
6) Check your state's laws and practice book on litigation. In many states, a settlor/trustee may not represent the trust in court, meaning that you would have to hire an attorney to defend even the most frivolous lawsuits.
I just am so tiered of classes and taking orders, I can't do school. Also I'm not destitute. I work here and there. I got plebty of money in my pocket for getting by. I am in my car because I just can't stomach giving some rich guy my money to have a roof I don't hardly use. I think I just will buy some land on contract and nobody should bother taking it till its paid off. That would be 10 or 15 years down the road. If so I have that long to prepare for my own SHTF.
From what I understand it is possible to title a property to a trust and still be required, as the grantor or settler, to pay the mortgage. If for any reason you do not pay the mortgage the mortgage holder has a lien on the property and is entitled to repossess the property no matter how it is titled.
But, from what I understand, you can not title a property to an entity which does not exist. You must create the trust first.
Think about it, if a trust had title to the property but did not exist, who would pay the property taxes?
But, from what I understand, you can not title a property to an entity which does not exist. You must create the trust first.
Think about it, if a trust had title to the property but did not exist, who would pay the property taxes?
For anybody interested, here is a link that will allow anyone to prepare a simple land trust. Even if you decide to use an attorney, it would be helpful to first fill out the trust document and bring it with you to the lawyer; it could cut the cost in that you will have all of the necessary information in one place.
www.wonder.legal
Living Trust Agreement - FREE - Template - Word and PDF
A Living Trust, also known as a Revocable Trust, is an Agreement created by a person, known as the Grantor, to hold some portion of their assets during their lifetime. The Trust provides for payment of income to the Grantor and the distribution of the remaining Trust assets once the Grantor dies.
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