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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Title holding trust tweaking Posted by Ward-CA- on November 13, 2001 at 4:57 AM In Reply to: Title holding trusts posted by Verl on November 11, 2001 at 7:31 PM : Ward, I have a home that is now paid for. My property has a creek and a swing that all the neighborhood kids like to play on. I worry about the liability now that I have lots of equity to loose. Does it make sense to place the property in a title holding trust and also place a trust deed on the property using a second title holding trust as beneficiary? I would be the beneficiary of both trusts. Please let me know if this will protect me. Any suggestions would be appreciated. =•=•=•=•=•=•=•=•=•=•=•= Verl, taking property out of your name is the most basic move you can make to protect it. It starts to get complicated when deciding what entity to put it into to hold title. Your basic choices are to put the title into a legal but fictitious entity like a corporation, or an LLC, or a family limited partnership or a trust. The trust is often chosen because of it’s privacy. It isn’t registered or recorded anywhere, whereas all other entities require the use of formation documents which are registered with the government and require an annual updating, along with intermittent updates whenever changes occur. In our open society anything registered with the government is open to inspection to any inquirer. I’d suggest that your title holding trust be irrevocable to strengthen it’s asset protection capability and that your trustee be an LLC which enjoys unlimited liability. I also like the appearance of existing liens against the property. But I champion the use of a large equity line of credit with a bank, like Wells Fargo, that encumbers your property up its full amount, whether it’s being used or not. There’s no interest or payments to worry about if the balance owed is currently zero, right?? And you could quickly borrow against it whenever you desired. The above maneuvers are simple, direct, very low cost and quite effective. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, I have a home that is now paid for. My property has a creek and a swing that all the neighborhood kids like to play on. I worry about the liability now that I have lots of equity to loose. Does it make sense to place the property in a title holding trust and also place a trust deed on the property using a second title holding trust as beneficiary? I would be the beneficiary of both trusts. Please let me know if this will protect me. Any suggestions would be appreciated. : =•=•=•=•=•=•=•=•=•=•=•= : Verl, taking property out of your name is the most basic move you can make to protect it. It starts to get complicated when deciding what entity to put it into to hold title. Your basic choices are to put the title into a legal but fictitious entity like a corporation, or an LLC, or a family limited partnership or a trust. : The trust is often chosen because of it’s privacy. It isn’t registered or recorded anywhere, whereas all other entities require the use of formation documents which are registered with the government and require an annual updating, along with intermittent updates whenever changes occur. In our open society anything registered with the government is open to inspection to any inquirer. : I’d suggest that your title holding trust be irrevocable to strengthen it’s asset protection capability and that your trustee be an LLC which enjoys unlimited liability. : I also like the appearance of existing liens against the property. But I champion the use of a large equity line of credit with a bank, like Wells Fargo, that encumbers your property up its full amount, whether it’s being used or not. There’s no interest or payments to worry about if the balance owed is currently zero, right?? And you could quickly borrow against it whenever you desired. : The above maneuvers are simple, direct, very low cost and quite effective. : 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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