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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Provision to easily delete a renegade trustee Posted by Ward-CA- on April 10, 2002 at 7:35 AM In Reply to: Selection of Trustee for Title Holding Trust posted by Sean Wagle on April 09, 2002 at 11:57 PM : OK Ward, I think I already know the answer to this: "The best entity to be trustee of a Title Holding Trust is your own LLC" as you're planning to do. : But I remember in some earlier posts you described allowing the debtor to form the THT installing himself as trustee. This would then appear in a deed as "From Sam Elliott to Sam Elliott, Trustee of the Elliott 6th Street Trust" That's something that would not tip off the lender that Mr Elliott plans to sign his beneficial interest over to an investor. Nor would it result in the investor's name appearing in public records. : But can this in some way, hold you "hostage", if the previous owner became uncooperative with you after transferring his beneficial interest? Does the trustee of a THT have powers kind of like the president of a corporation? What would you do if this trustee later became a pain in the neck somehow? =•=•=•=•=•=•=•=•=•=•= Sean, to avoid a renegade trustee situation we always get, at the time of nominating someone the trustee of our trust, a fully executed and notarized deed back from them that deeds the property from them as trustee to ourselves as the successor trustee. We hold that document in reserve, to record at a moment’s notice if we need to anytime in the future. At that time we would white-out our name as the successor trustee and type in the party we really want in our stead, prior to recording it. Of course, we’d also receive from our successor trustee a backup deed from them that’s fully executed and ready to record—wherein we again are named as the successor trustee. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : OK Ward, I think I already know the answer to this: "The best entity to be trustee of a Title Holding Trust is your own LLC" as you're planning to do. : : But I remember in some earlier posts you described allowing the debtor to form the THT installing himself as trustee. This would then appear in a deed as "From Sam Elliott to Sam Elliott, Trustee of the Elliott 6th Street Trust" That's something that would not tip off the lender that Mr Elliott plans to sign his beneficial interest over to an investor. Nor would it result in the investor's name appearing in public records. : : But can this in some way, hold you "hostage", if the previous owner became uncooperative with you after transferring his beneficial interest? Does the trustee of a THT have powers kind of like the president of a corporation? What would you do if this trustee later became a pain in the neck somehow? : =•=•=•=•=•=•=•=•=•=•= : Sean, to avoid a renegade trustee situation we always get, at the time of nominating someone the trustee of our trust, a fully executed and notarized deed back from them that deeds the property from them as trustee to ourselves as the successor trustee. We hold that document in reserve, to record at a moment’s notice if we need to anytime in the future. : At that time we would white-out our name as the successor trustee and type in the party we really want in our stead, prior to recording it. Of course, we’d also receive from our successor trustee a backup deed from them that’s fully executed and ready to record—wherein we again are named as the successor trustee. : : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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