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Title Holding Trust Training

(Trust Kit + one day)

It's somewhat surprising that most people, even those with a fair amount of real estate experience, don't appreciate the nuances involved in holding title to real property. The most common presumption people have is that it's best if their property's title is in their name. But like most presumptions, that's about the worst choice one could make.

The reason is that things happen to people (lawsuits, tax liens, judgments, divorces, death, etc.) that can instantly cloud the title to whatever property they hold in their names, making it impossible to sell or refinance until their title is cleared of such impediments. The problem is ever more severe when multiple parties, especially non-related investors, are joined together on the title of real property.

The Alternative
Don't put title in a living, breathing human's name. For years real estate pros have deftly sidestepped title calamities by vesting their properties in a legal, virgin, non-living entity (such as a corporation, a limited partnership, or a title holding trust).

Nowadays though, many of them are switching to the use of the non-taxed title holding trust since California is now imposing (as of January 1, 1994) a minimum, yearly franchise tax of $800.00 on any and all entities required to be registered with the Secretary of State, regardless of whether or not they're currently doing business in California. [California Revenue & Taxation Code, Section 23081(b)]

So even the newly adopted and novel "limited liability company" is being assessed the franchise tax board's $800.00 minimum yearly tax.

Keeping the title to your property clear of any clouds is so important, that even the use of a taxable corporation to hold it is preferable to keeping it in your name. Unlike us mortals, a legal entity won't suddenly disappear, die, or become incompetent overnight. And note that control of a corporate entity takes the form of privately transferable personal property (i.e. shares of stock, partnership units, beneficial interests, etc.) whereas the transfer of title to real property is publicly recorded, for all the world to see and investigate.

"Teflon Coat" The Titles To Your Properties
Create a legal, artificial association for each property you now own and deed your title over to it. Don't worry, you'll still be able to transfer the ownership/control of that entity back and forth privately. The absolute best entity for the task is the title holding trust or land trust because it's the most private, cheapest, easiest and fastest to legally create.

Title companies regularly accept the title holding trust format because it was originated by one of the largest title companies of all time, Chicago Title & Trust Company, and because it's a time-tested device that's been used to hold title to property (especially large investment properties) since 1891.

"No Hassle" Guarantee
If, at the end of the day's training session, you were still uncertain about the efficacy of the trust format, or if you weren't satisfied that you would ever use it-you'd owe us absolutely nothing. You'd just give us our forms kit back and we'd cheerfully return your uncashed training fee.

Learn How To Do It
All it takes to start using the trust is to spend a day with us in San Diego. We will explain the use of all the master forms in our 102+ page trust manual and relate with you real life examples of the wide variety of problems it has solved or avoided (especially the "privacy of ownership" angle) during the time we've been using the trust format since 1982. Our training fee is $1,600 for one person or $2,600 for two.

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

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InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455