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Who can be a Trustee of a Trust? Another Trust? DBA?

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Taxing Matters

Overtaxed Member
we were talking about revocable trusts.
It's not clear to me exactly what kind of trust the OP really wants or what all his/her goals are aside from staying anonymous. Even the phrase land trust does not tell you exactly what the trust will do as there are various ways those can be done. That's why I wanted the OP to be clear about the distinctions involved.
 


TrustUser

Senior Member
sounds good.

with regard to various sorts of land trusts, have you seen any that do not give the beneficiary total control over the trustee ?

cuz i know this is the main reason for them. (getting the owner off title, but still allowing him total control)

i have seen quite a few, and the ones that i have seen, have all been structured around that one common theme

when i am trustee of my own trust, i am still required to fulfill the requirements of the trust. so as long as i do not give myself too much leeway (i take almost nothing), i am okay.

but in land trusts, the beneficiary tells the trustee what he wants him to do. the trust still allocates all the various powers, when necessary. but the trustee just does what the beneficiary (in a non fiducial capacity) tells him to do. there are little to no reigns on what the beneficiary can ask to be done (not illegal stuff, of course)

i am surprised that land trusts have been accepted for such a long period of time. i think they violate basic trust laws, and can legally be invalidated, if a judge chose to do so. albeit, i have never heard of this being done. but then i have never heard of one being challenged.
 

silver8410

New member
Sorry for commenting on a old post. Just to quickly state, a land trust is generally a revocable grantor trust is meant to hide the owners of the trust (in states that accepts them). In states that dont, it can be somewhat pointless. Being the trustee of your own trust land trust doesnt mean you are the owner unless it is shown up in public records. Keep in mind, if the land trust is doing anything illegal, a court can make the trustee give up the name of the beneficiary and/or invalidate the whole trust and make the trustee along with the beneficiary liable. I do not know what you really are trying to do though, but its best to talk to an attorney. If you are getting into real estate and trying to seek some privacy, you can form a trust in a state like delaware (though you will need to pay for a delaware trustee unless youre going to be an RIC (registered investment company)), and have an llc or another legal separate entity have the power of attorney of the trust, which would keep your name out of the name of the trustees, but this isnt a simple matter and should be discussed with an attorney. I honestly wouldnt be concern about who would know if youre the trustee or not since it wouldnt show the grantor or beneficiary on record (unless the county requires it). If youre really concern, just hire a bank, attorney (preferred) or someone who has experience being a trustee to be the trustee of your [land] trust, and instruct them on what to do, what to sign, etc (though it all depends on the governing instrument of the trust).
 

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