Why You Should Never Place A Personal Residence Into A Land Trust
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- čas přidán 2. 08. 2024
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In today's video, I discuss why you should never put your personal residence into a land trust and what to do if you've already made this common mistake. Learn the crucial differences between land trusts and residence trusts and how to protect your homestead exemption effectively.
I'll walk you through the common misconception of using land trusts for personal residences, the pitfalls of transferring legal and equitable title, and why it's crucial to avoid this mistake.
Plus, I'll share an alternative trust that offers better protection for your home.
Learn how to structure your land trust the correct way 👉 aba.link/bet
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Show Notes:
0:00 - Introduction
1:16 - The Setup of a Land Trust
4:12 - Homestead Exemption Explained
7:08 - Issues with Land Trusts for Personal Residences
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ABOUT CLINT COONS
Clint Coons, Esq. has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#landtrust #personalresidence #assetprotection #clintcoons
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Always great info!
Great info. Ty
Thank you 🙏
Super thx Clint! Super useful.
Glad it was helpful
So if my trust name includes a portion of the address within the name, when I go to make my offer, the seller is going to see that I included part of the home address within the trust name, which would indicate that I’m very inclined/expecting to buy… That’s not optimal for negotiation… How I can prevent the seller and his realtor from seeing the name of my trust in the offer? Or do you recommend naming the trust something else and then changing it afterwards to reflect property address?
Hey Clint,
I just watched your video on personal residence and land trust. You made it very clear that the personal residence should go into a residence trust. Is a residence trust the same as a Qualified Personal Residence Trust (QPRT)? If so, is it required to be irrevocable or can it be revocable? If not, am I getting my Google search wrong because from what I see a QPRT is a life-time transfer to reduce gift or estate tax. Is there a better search term other than residential trust that will give me more information on that particular topic? Thanks.
It is different. A QPRT has an estate tax component and is only used for property that is unencumbered. Great strategy but different.
Hi Clint, great info. When you set up residence trust,how this affects the home insurance? Are you required to inform the insurance company and add the trustee/ beneficiary as an additional insurance ?
Yes you would want to update your carrier
@ClintCoons Clint, I have a series of irrevocable asset protection trusts set up. As the Grantor, I will have my trustee purchase a house in the name of that irrevocable land trust and I will occupy it from time to time. Since the trust will own the house, is it a moot point concerning homestead exemption? As a client of Anderson Advisors, I can have you review that trust and still use your services as a nominee trustee, correct?
Yes we can serve as a nominee trustee on trusts that we create.
Clint, what kind of structure would you recommend for House Hacking (i.e. Owner occupied Duplex with tenant)? Your recommended structure of an LLC might not work for asset protection since it mingles personal use with business since you are living there.
It has nothing to do with you living there if it’s not in your name and is an investment. You have to start looking at things as the company is the owner.
What if you live in New Jersey
Can you do a video on HOW to restate a Trust or Operating Agreement?
Example: include dates, record it, etc. Whatever is needed to do it right?
Basically you re-write the document and have it notarized. If you want more help than that, you better call them ;)
@@dannysmith4649 notarized is the key 🔑 here. That's the stuff I wanted to know, thank you. So as long as it's notarized then it's legal and legit once it's updated?
@@AberrantArt Yes, that's right.
I'll definitely look into making a video on how to restate a Trust or Operating Agreement.
In my state, you can only have 1 property designated as your "primary residence," which means that you can only claim the Homestead Exemption on 1 property. Now, if I buy a beach house, although it may be a personal residence of mine, it's not my "primary residence" and therefore, it isn't eligible for any such homestead exemption... So for the beach house, should I put it in a land trust or a residence trust?
Land trust would be my preference.
My homestead exemption is under $20k. My personal residence is worth over $600k. Homestead exception is a joke in Tennessee and will not protect me in case a creditor comes after me. Why would I want to protect my homestead exception?
Correct. In your situation you might consider a different structure.
With a residence trust, should the beneficiary be an LLC or the name of the homeowner?
Your living trust would be the beneficiary
In your scenario, are you referring to a revocable living trust for your primary residence opposed to a revocable land trust?
I prefer to use a revocable residence trust for anonymity.
Does a land trust protect from federal or state tax liens?
Hahahahahahaha.
@@Savingusnow Im asking for a friend. LOL
I have a friend who would like to know the answer, as well.
@@hwoodist I have a suspicion that it will protect from the greedy ones. Your name is not on the deed and technically you don't own the property.
It does not
I thought you were going to say a personal property trust 🥴🥴
Ahh but does it make sense?
@@ClintCoons true. That's why I watched till the end 😅