Can a Title Holding Trust Protect Investors From Liens or Judgments?
The ability to protect real estate investors, especially co-investors, co-owners or fractional owners in real estate, from liens or judgments that would normally attach to the real estate is one of the biggest benefits provided by the Title Holding Trust or Land Trust.
You may know and/or remember from our seminars and webinars that the Title Holding Trust changes the way in which an investor or multiple investors own and hold title to real property. The Trustee of the Title Holding Trust or Land Trust acquires and holds the legal title to the actual real estate and the owner or co-owner is owns and holds the beneficial interest of the trust. The beneficial interest in the trust is a personal property interest and not a real property interest, which means that the beneficiary now owns and holds personal property and not real property.
Liens and/or judgments can no longer attach to the real estate because the investor or co-investors no longer own the real estate. They own beneficial interests in the Title Holding Trust or Land Trust. The lien or judgment can still attach to the individual's beneficial interest in the trust, but not the real estate since it is no longer owned by the individual.
The Title Holding Trust or Land Trust is a great way to protect owners, especially co-owners, from each other's liens and judgments.
Tuesday, February 2, 2010 at 07:51PM