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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Ways of hiding the ownership trail... Posted by Ward-CA- on May 11, 2002 at 5:52 PM In Reply to: Title holding trusts & asset searches posted by Jason on May 10, 2002 at 11:21 PM : Ward; : As a lawyer, how do you think of this dilemma. I transfer all existing property out of my name and into a title holding trust. Any future property purchased to be in name of title holding trust. I get sued and the claimant wins a judgement. His lawyer does an asset search. Won't a title search be able to show that the original properties were owned by me and then transferred into a trust. Wouldn't that make an argument to the court thats it's reasonable to assume I still own the properties, merely transferring them into a trust to avoid direct liability? If this is a valid premise, how do you get around the possibility the courts will insist these properties revert back to me so they can be seized by the claimant? : Jason : Ward; : As a lawyer, how do you think of this dilemma. I transfer all existing property out of my name and into a title holding trust. Any future property purchased to be in name of title holding trust. I get sued and the claimant wins a judgement. His lawyer does an asset search. Won't a title search be able to show that the original properties were owned by me and then transferred into a trust. Wouldn't that make an argument to the court thats it's reasonable to assume I still own the properties, merely transferring them into a trust to avoid direct liability? If this is a valid premise, how do you get around the possibility the courts will insist these properties revert back to me so they can be seized by the claimant? : Jason =•=•=•=•=•=•=•=•=•=•= Jason, Ways of camouflaging property ownership: 1. Transfer the title of your existing property to a trust in CA without publicizing your transfer tax declaration. A. California’s Revenue & Taxation Code Section 11932 allows you to make your transfer tax declaration on a separate, non-recorded piece of paper, enabling you to effectively hide whether or not the change in title constituted a sale or not. B. Couple with suggestion A above the use of a surname that’s different than yours (for naming your trust and to be your trustee). 2. Make your trust irrevocable, where you’re not the trustee and not the holder of the power of direction over the trustee. Now you can truly argue that you aren’t empowered to revoke the earlier transfer of property into the trust. Generally when an attorney orders an asset search its a contemporaneous search through the records rather than one that starts back 5 years and comes forward to today. Therefore, with the passage of time, the typical asset search will come up empty if you switched over to the trust format a year or two earlier. Hope this helps. Follow Ups: Re: Ways of hiding the ownership trail... Jason 8:11 PM, 05/11/02 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Ward; : : As a lawyer, how do you think of this dilemma. I transfer all existing property out of my name and into a title holding trust. Any future property purchased to be in name of title holding trust. I get sued and the claimant wins a judgement. His lawyer does an asset search. Won't a title search be able to show that the original properties were owned by me and then transferred into a trust. Wouldn't that make an argument to the court thats it's reasonable to assume I still own the properties, merely transferring them into a trust to avoid direct liability? If this is a valid premise, how do you get around the possibility the courts will insist these properties revert back to me so they can be seized by the claimant? : : Jason : : Ward; : : As a lawyer, how do you think of this dilemma. I transfer all existing property out of my name and into a title holding trust. Any future property purchased to be in name of title holding trust. I get sued and the claimant wins a judgement. His lawyer does an asset search. Won't a title search be able to show that the original properties were owned by me and then transferred into a trust. Wouldn't that make an argument to the court thats it's reasonable to assume I still own the properties, merely transferring them into a trust to avoid direct liability? If this is a valid premise, how do you get around the possibility the courts will insist these properties revert back to me so they can be seized by the claimant? : : Jason : =•=•=•=•=•=•=•=•=•=•= : Jason, : Ways of camouflaging property ownership: : 1. Transfer the title of your existing property to a trust in CA without publicizing your transfer tax declaration. : A. California’s Revenue & Taxation Code Section 11932 allows you to make your transfer tax declaration on a separate, non-recorded piece of paper, enabling you to effectively hide whether or not the change in title constituted a sale or not. : B. Couple with suggestion A above the use of a surname that’s different than yours (for naming your trust and to be your trustee). : 2. Make your trust irrevocable, where you’re not the trustee and not the holder of the power of direction over the trustee. Now you can truly argue that you aren’t empowered to revoke the earlier transfer of property into the trust. : Generally when an attorney orders an asset search its a contemporaneous search through the records rather than one that starts back 5 years and comes forward to today. Therefore, with the passage of time, the typical asset search will come up empty if you switched over to the trust format a year or two earlier. : 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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