OfflineOk, let's say that an investor wanted to keep some property for themselves and got in a legal situation where they were gonna get sued...would it be better if that investor were to have put his properties in a trust account to where they would still be getting money, but not lose the properties? How would an investor go about doing that and finding a trust account to put their investments in? I'm not looking for legal help, I just heard of this and wanted to get some input.
Thank you for taking the time to read this.
__________________
Anxious to start in North Dakota My theme song Travis McCoy (ft[1]. Bruno Mars) - Billionaire - CurrentHipHop.com.mp3
First of all you can't establish the account after the fact it would be deemed a fraudulent transfer---it dosen't sound like that is what you are doing. However, for questions of this nature I go to one place, www.assetprotectionbook.com . When you go there read the middle section that first appears on the screen---titled, "Asset Protection: when is too late?" You'll find this is a good starting point for your search. They also have an "Asset Protection Trust" which sounds like what you might be searching for. They have a plan for any need. You can also pick up a copy of the book---Asset Protection Book---at Barnes & Nobel, where I got my copy. Or, you can order one at the site from Amazon. These guys set-up my series LLC for me, you can check that out there as well. It's a great nifty solution for protecting all your real estate holdings under one umbrella LLC. I beleive these guys created the series LLC. It has been around for only 12 years and has not been tested in court---thats the only drawback. Last I checked it was only available in 7 states with 5 pending so there might be 12 by now. However, you can form the SLLC in one state and register it in the state you do business. I have mine registered in 4 states. It is a great solution for those of us buying in several states.
Second, go to these 3 sites; 1. www.taxloopholes.com , This is Diane Kennedy's site the best real estate accountant in the country. You'll find great articles on this topic and its relationship to REI and more here, you can also blog for more info on the topic. 2. www.businessfirstformations.com , This is Megan Hughes' site, she is a colleague of Diane Kennedy and you'll find useful info there as well. 3. www.trustsandwich.com , This is an asset protection product for REI's created by Diane Kennedy. It is specifically designed for the nonsense going on in todays market. It is a combination of a Grantor Trust combined with an LLC to give you flexibility for financing--like if you want to pull cash out without the funds being seasoned--plus asset protection, and estate planning all combined into one nice package. This kills 3 birds with one stone. The trust actually owns the LLC not you technically. It is a brilliant strategy created by Diane to circumvent the ridiculous Freddie & Fannie guidelines. The only one drawback is, it dosen't take the debt off your personal credit, but that's really no big issue as long as you pay all your bills on time. Call this number to get info on the trustsandwich--1.800.715.2534. The smart and the wealthy will always out fox the politicians. The politicians don't even read the bills they enact, but lucky for us people like Diane and her staff does. By the way Diane has an affiliate group that will do your taxes for you---they only charge $250, or Diane can do it for you for $5K. But she'll save you $30K---I think thats a good trade.
Mason, I hope this will help to point you in the right direction.
Best regards,
southstar
KNOWLEDGE FUELED BY EMOTION EQUALS ACTION, BUT IT IS ACTION THAT ENSURES RESULTS.