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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Not really... Posted by Ward-CA- on August 21, 2006 at 9:43 AM In Reply to: Land Trust Agreement and Transfer Tax in LA County posted by WPCOwner on August 21, 2006 at 8:40 AM WPC, The major benefit of using a title holding trust (THT), formerly referred to as a land trust, is that of privacy. So it’s a given that you’d never record your trust or any other document that discloses the identity of the beneficiary. The routine would be to have the Seller record a notarized deed, transferring title from herself as an individual to herself as trustee of her trust. At the time of recording the transfer deed the Seller would submit a Preliminary Change of Ownership Report (PCOR) with only Part I filled in, since no sale of real property has taken place. A trust is like a contract. Therefore, her signature on it as the trustee and beneficiary doesn’t require notarization for any reason. Trusts are legal, fictitious entities. And like other entities, such as a corporation, they can be bought and sold. A corporation changes hands with the buyer purchasing 100% of its stock. A trust changes hands with the buyer purchasing 100% of its beneficial interest. In neither instance is the sale of stock or beneficial interest recorded in the County Recorder’s office. That’s because the recorder’s office is only concerned with the sale or transfer of real property, not personal property. Once the Seller sells you 100% of the beneficial interest in her trust, you’d also have her sign a notarized deed that transfers the trusteeship of her trust to you or your designated trustee, perhaps your LLC. Hope this helps, -----Ward------- ================================ : Here is a hypothetical situation but a one that I will probably encounter: : Buyer asks Seller to enter a trust. : At closing, Seller will be the beneficiary and my LLC will be the Trustee. A trust is notarized. Seller then immediately signs a quitclaim deed over to the trust (also notarized). A preliminary change of ownership is attached to the quitclaim deed stating that the LLC (Trustee) in the trust is now the owner/beneficiary. The trust and the quitclaim are then recorded in the County clerk. : Is this the order in how a trust is created and recorded? Also, will transfer and supplemental taxes still be incurred? If so, is there another way to legally avoid them when purchasing a home? : Thanks in advance! Follow Ups: Re: Not really... WPCOwner 11:26 AM, 08/21/06 (1) Getting there.. Ward-CA- 12:34 AM, 08/21/06 (0) Post a Followup: Name : E-Mail : Subject : Comments: : WPC, : The major benefit of using a title holding trust (THT), formerly referred to as a land trust, is that of privacy. So it’s a given that you’d never record your trust or any other document that discloses the identity of the beneficiary. : The routine would be to have the Seller record a notarized deed, transferring title from herself as an individual to herself as trustee of her trust. : At the time of recording the transfer deed the Seller would submit a Preliminary Change of Ownership Report (PCOR) with only Part I filled in, since no sale of real property has taken place. : A trust is like a contract. Therefore, her signature on it as the trustee and beneficiary doesn’t require notarization for any reason. : Trusts are legal, fictitious entities. And like other entities, such as a corporation, they can be bought and sold. A corporation changes hands with the buyer purchasing 100% of its stock. A trust changes hands with the buyer purchasing 100% of its beneficial interest. In neither instance is the sale of stock or beneficial interest recorded in the County Recorder’s office. That’s because the recorder’s office is only concerned with the sale or transfer of real property, not personal property. : Once the Seller sells you 100% of the beneficial interest in her trust, you’d also have her sign a notarized deed that transfers the trusteeship of her trust to you or your designated trustee, perhaps your LLC. : Hope this helps, : : -----Ward------- : ================================ : : Here is a hypothetical situation but a one that I will probably encounter: : : Buyer asks Seller to enter a trust. : : At closing, Seller will be the beneficiary and my LLC will be the Trustee. A trust is notarized. Seller then immediately signs a quitclaim deed over to the trust (also notarized). A preliminary change of ownership is attached to the quitclaim deed stating that the LLC (Trustee) in the trust is now the owner/beneficiary. The trust and the quitclaim are then recorded in the County clerk. : : Is this the order in how a trust is created and recorded? Also, will transfer and supplemental taxes still be incurred? If so, is there another way to legally avoid them when purchasing a home? : : Thanks in advance! 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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