Land Trusts for Privacy & Profit: Using the ""Illinois-Type"" Land Trust in Other States

by Warda, Mark

• ISBN13: 9781888699067
• ISBN10: 188869906X
• Edition: 2nd
• Format: Paperback
• Copyright: 2004-01-01
• Publisher: Galt Pr

Table of Contents

Introduction	7	(4)
Chapter 1: How and Why Land Trusts Started	11	(4)
Chapter 2: Benefits of Land Trusts	15	(14)
Privacy
Avoiding Probate
Avoiding Ancillary Administration
Keeping Liens and Judgments off the Property
Avoiding Litigation
Ease of Control by Multiple Owners
Ease of Transferability of Interests
Ease of Changing Contingent Beneficiary
Simplification of Making Gifts
Ease of Foreclosure
Safer Lease/Option Agreements
Keeping Assessments Lower
Keeping Sales Price Secret
Avoiding Transfer Taxes
Limiting Liability
Improved Financial Statement
Ease of Negotiation
Avoiding Partition
Avoiding Personal Problems of Beneficiaries
Holding a Judge's and Politicians' Property
Ease of Property Management
Saving Title Insurance Premiums
Avoiding Real Estate Brokerage Laws
Avoiding Spouse's Forced Share
Buying Foreclosures
Avoiding "Seasoning" Problems
Avoiding Tax Withholding
Chapter 3: How a Land Trust Works	29	(16)
What a Land Trust Is
What a Land Trust Is Not
Potential Legal Issues
What if your Trust Is Not Valid?
When Are Legal Issues Most Likely to Come Up?
How to Avoid Legal Problems
The Trustee's Duties
Out-of-State Law
Necessary Documentation
Necessary Parties
Optional Parties
Types of Property
Agency Law
Title to the Property
Owner of the Property
Personal Property
Liability
Due-on-Sale Clauses
Chapter 4: How to Set Up a Land Trust	45	(18)
Buying Property into Trust
Putting Property into Trust
Choosing the Trustee
Naming the Trust
Preparing the Deed
Preparing the Trust
Preparing Amendments to the Trust
Property Management Agreement
Preparing Trust Certificates
Preparing the Beneficiaries' Agreement
Obtaining Insurance
Multiple Properties
Sale and Mortgage Back
Other Interests in Land
Out-of-State Property
Power of Direction
Foreign Beneficiaries
Notary and Witnesses
Recording
Notice to the IRS
Chapter 5: Financing Property in a Land Trust	63	(6)
Mortgage of the Real Estate
Pledge of the Beneficial Interest
Chapter 6: Operating a Land Trust	69	(6)
Leasing the Premises
Amending the Trust
Changing Successor Beneficiaries
Death of a Beneficiary
Changing Trustees
Death of a Trustee
Governmental Liens
Terminating the Trust
Chapter 7: Litigation Involving Land Trusts	75	(8)
Parties to the Lawsuit
Identification of the Trustee
Joining the Trustee Individually
Evictions
Bankruptcy
Tort Actions
Creditor Actions
Chapter 8: Selling Property in a Land Trust	83	(6)
Deeding the Property
Trustee's Deed
Assigning the Beneficial Interest
Lease Option Agreements
Contract for Sale
Oral Agreements
Brokers' Commissions
RICO Lien Search
Tax Forms
Other Requirements
Chapter 9: Federal Taxes	89	(8)
Tax Returns
Taxpayer Identification Number
Notice of Fiduciary Capacity
Beneficiary Status
Tax-Free Sale of Residence
Section 1031 Exchanges
Estate Taxes
FIRPTA
Form W-9
Chapter 10: State Taxes	97	(4)
Real Estate Taxes
Homestead Exemption
Real Estate Transfer Tax
Sales and Use Tax
Rental License Tax
Intangible Personal Property Tax
State Income Tax
Chapter 11: Securities Laws	101	(6)
What Is a Security?
What if a Security Exists?
Avoiding Securities Laws
Exemptions from Securities Laws
Get an Opinion
Further Research
Chapter 12: Drawbacks & Pitfalls	107	(4)
Unfamiliarity in Marketplace
Uncertainty
Costs
Trustee
Homestead Exemptions
Chapter 13: Concerns for Trustees	111	(6)
Fiduciary Obligations
Liability
Corporate Trustees
CERCLA
Further Guidance for Trustees
Bibliography	117	(4)
Index of Cases	121	(2)
Appendix A: State Statutes, Cases and References	123	(54)
Appendix B: Forms	177	(42)
Index	219