How to protect the privacy of ownership
You are about to acquire a property, but you don’t want to hold the titles because you don’t want your debtors to know about it. You created a LLC and transfer the title to the company, thinking your privacy is protected and the property is not touchable to your debtors.
What happened?You received a tax bill for over $2000 from the county recorder. And that's not all. Your lender called you up to inform you that you must pay your mortgage in full within 30 days, or they will initiate a foreclosure on the property.
Why did this happen?The county wants money from you because there is high percentage transfer taxes when you have mortgage on the property in questions; Your lender has right to accelerate your note if you transfer the mortgaged property without their approval. Will your debtors know about this property? Oh yea, easily. The answers are two clicks away on the Internet. Your debtors can easily find out the LLC you opened and pierce company's protection. So, we say letting your company hold your property does nothing to protect your privacy. You are asking:" So, if this doesn't work, what does?" The answer has two words: Land Trust.
What is Land Trust ?Think of Land Trust as a box with its sole purpose to hold title to Real Estate for the grantor. The box comes with a set of instructions for the trustee and the beneficiary with trustee as the legal representative of the trust and the beneficiary being the real owner who has the power to lease, sell, or encumber the property. With Land Trust in place, the owner of the property will be shown as the Trust, whereas the beneficiary collects the income, pays tax and makes transfers decision.
Another Benefit of Land Trust.Other than, a Land Trust, if structured well, can avoid probate and save the grantor another chunks of cash. If this sounds appealing to you, it is time to call your attorney.