Howard, to set up LLC

[Elrod]

How many parties/entities are required? ( as for a trust, beneficiary and trustee)

[SPIVALAW]

An LLC can have 1 member.

For a trust all 3 can be same person

[Elrod]

or is that only a way to get a degree of confidentiality?

[SPIVALAW]

correct. Use an attorney as agent of service.

[mike_mn]

In a Land Trust, if one person is the beneficiary and trustee, the trust cannot provide any asset protection and can easily be pierced for liability.

With 2 or more non-related beneficiaries, and a non profit corporate trustee, a land trust is bullet proof asset protection, no entities needed. Judgements and charging orders cannot be attached to a trustee held land trust property from one beneficiaries judgements, unless the trust can be peirced or nullified. That is very easy to do if you are both the beneficiary and the trustee. All but impossible to do with a well run non profit corporate trustee and 2 non related beneficiaries.

Being the beneficiary and trustee can provide you a certain amount of anonimity on public records if you use another person or your own company as a trustee, however, unless you can account for the proper use of the trust, such as paying a trustee fee, and having trustee duties, it can be easily nullified. So dont use a Land trust as asset protection unless you use it properly.

Another thing, if you are using the land trust as asset protection, you need to realize that you do not deed a property to the trust. You deed the property to the trustee for the xyz trust. The trustee holds title, the trust does not. By deeding property to the trust itself, you may find yourself with a nullified trust.

[SPIVALAW]

I disagree in large part.

States vary but,

In my opinion a land trust offers NO real asset protection
and no tax benefits.

Yes you can muddy the waters and delay but no real Veil in my opinion.

It is only useful for hidding the owners name.

Howard

[mike_mn]

How can a judgement separate benificiaries if there is one owner? The beneficiary directed corporate trustee?

Agreed about states vary, however, to my knowledge tennesee and Louisana are the only 2 that have legislation that do not recognize a land trust. The other states are allowed by either not having legilation on them or having legislation on them that allows them.

Reference to naming a co-beneficiary (preferably with a different last name) in a land trust inhibiting any creditor's lien from attaching to the property ref to Kaiserman v. Ellenson, 17 Ill.App.3d, 308 N.E. 2d 813 - 1974

Reference to inhibiting attaching state or IRS liens- ref to Chicago Fed. S&L v. Cacciatore, 25 Ill.2d, 535, 185, N.E.2d 670 - 1962.

[SPIVALAW]

I understand.

You are making the same argument as a limited partner would make.
But you are relying on a trial judge and appeals court to follow that theory.
Each Judge, each state, each district can vary.
I agree with most of what you said earlier, except using a trust for asset protection.
Its okay, opinions vary.

I am just saying my opinion, which is it is not a safe strategy.
Why take that position when you can easily use or combine entites and avoid the risk?

EDIT: PS some states require an individual be the trustee.

Make it a great day!
Howard

[smidgen]

FYI, I am now this week going to an atty to set up my LLC, and talk about other possible tax deductions that I can take once the LLC is set up, YEAH! Today, I find out about the 3 properties that I have in court.... so I am a little on pins and needles.

I am praying that since I don't have my LLC established yet i won't get any problems with the capital once I sell? My gut says wait until all the legal work is done before I sell... is that a good idea?

Thanks