In this episode of Coffee with Carl, attorney Carl Zoellner explains the simple steps to funding a land trust.
A common question I receive from clients is: What does it mean to “fund” your land trust?
Most of our clients have a land trust, and when they first get their trust documents, they often remark on the portion that says “There’s $10 in the land trust.” This is called nominal consideration, and it basically means that the trust does indeed exist.
This is quite different from funding your land trust. When you fund your land trust, you deed a property into the trust. That’s what makes it “funded.”
You can fund entities and trusts in different ways, but basically the question is: does the trust/entity hold assets of some sort?
Here at Anderson Advisors, we name things based on their function. Thus, land trusts hold land or real property. Personal property trusts, on the other hand, hold personal property (which is virtually anything except real estate, including membership interest in an LLC).
For land trusts, you need to deed a property (normally in your name at first) from your name to the land trust. The trust then owns it and you or your nominee trustee are on title. And just like that, the trust is funded.
Watch as Carl simplifies funding land trusts: what it means and how to do it.
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