 | 
11-15-2008, 11:21 AM
| | Junior Member | | Join Date: Jan 2008
Posts: 2
| |  The best way to protect land from creditors a trust?
Hi All,
What is the best way of securing a large piece of land (425 acres in Texas) for a family who creditors are pursuing?
My friend owns a large piece of land and is trying to secure it for his children. He has a large outstanding debt though. The land was not used a collateral for the debt and there are currently no liens on the land. However, with emergent technology, he suspects that the creditor will find out about the land and attempt to seize it.
My thoughts were initially a trust. However, I believe (but am not certain) that if you put a piece of land in a trust and the creditor can prove you did this in an attempt to avoid prosecution, then the action can be reversed. I am not really clear on the waiting period in Texas for a trust either.
Regards,
Scott_ttocs46 |
11-15-2008, 11:31 AM
| | Senior Member | | Join Date: Sep 2004
Posts: 1,977
| | | Why doesn't he just pay his debts?
__________________
Arthur Carlson: Well, first thing we do is call an attorney.
Andy Travis: You always say that.
Arthur Carlson: Yeah, but this time it's appropriate. |
11-15-2008, 11:31 AM
| | Member | | Join Date: Mar 2002 Location: oregon
Posts: 667
| | | Easy answer. You asked, "What is the best way of securing a large piece of land (425 acres in Texas) for a family who creditors are pursuing?"
Pay off the debt. If the land is the only asset remaining of value, it will be claimed. Perhaps the land will need to be partitioned and sold in pieces to satisfy the debt. |
11-15-2008, 11:59 AM
| | Member | | Join Date: Jul 2008
Posts: 151
| | | in general, a revocable trust does not protect the grantor from creditors. but if the trustee is someone other than the grantor, it may not be as easy to find. |
11-15-2008, 12:00 PM
| | Junior Member | | Join Date: Jan 2008
Posts: 2
| | | Thanks for your responses. I don't think the aim is to be delinquent. However, if the piece of land is your only asset - where you live, and they take it, how will you make money to repay a debt if you are suddenly homeless? |
11-16-2008, 11:27 AM
| | Senior Member | | Join Date: Feb 2005
Posts: 2,591
| | Quote: |
However, if the piece of land is your only asset - where you live, and they take it, how will you make money to repay a debt if you are suddenly homeless?
| They have these things called mortgages. You pay off the original debt from hte mortgage and then live on and use the land to pay back the mortgage. |
11-16-2008, 01:12 PM
| | Member | | Join Date: Mar 2002 Location: oregon
Posts: 667
| | | How are "the large debts" associated with the land? If the land is not producing enough to pay the large debts (if they are associated), then the land has to be sold. To secure the land for children is not a very good reason to hold onto the land. The key to holding the land is paying off the debt. That is common sense. No different than trying to save your automobiles to pass on to the children. | |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | | | | Thread Tools | | | | Display Modes | Rate This Thread |  Linear Mode | | 
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts
HTML code is Off | | | |
|
