[Also included below as a random tangent and not related to business at all (except I did make it here to write this post): Bare to Bear – a True Tale of Grim Survival and Wobbly Knees] . . .
A title holding (land) trust is a great way to hold title to property, and personally, I will never again hold title to any piece of property in my own name, or even in an LLC or Corporation.
First, it’ll go into a land trust, and my entity of choice (LLC vs. S Corp) will be the beneficiary.
When the trustee is deeded the property, the trustee is said to hold bare legal title. The trustee holds legal and equitable title, but does NOT have the power of direction . . . that resides only with the beneficiaries.
The trustee does not have the ability to take any action with regards to the property or related paperwork without the express written consent of all beneficiaries. This is why, in most states, there is unparalleled asset protection:
- not only do you have killer anonymity and privacy in ownership,
- but your ownership is consider personal property, not real property (which means it’s usually protected from partition, judgments, probates, divorce proceedings, IRS tax liens, etc)
Judges, police officers, politicians . . . these people never want to show up on public record, right? They don’t want anyone to know what they own or where they live, and no one should in a society where lawyers are looking for a reason to snatch away your net worth. Hey, wait a minute . . . are they working for the government???
Contrastingly, BEAR legal title refers to that right that a large mammal, known for its prodigious strength, has when it wants your property . . . or at least to get in for a snack . . .
It usually doesn’t ask for written or even verbal permission . . .
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