If you are a real estate investor looking for a way to protect your assets, then you should consider putting your property into a land trust. This way is incredibly common and beneficial to keep your property and interests safe. Below are a few reasons for you to consider this process.
1. Increased Privacy
The internet has made it incredibly convenient and easy to look up information, including who owns a particular piece of real estate. If you’re like most people, then privacy is probably incredibly important to you. If you want to keep your information private, then putting it into a land trust is in your best interest, as these aren’t part of the public record.
2. Assist with Estate Planning
After your life on this planet, to ensure that your property goes to the beneficiary to whom you want it to go, you can place it into a land trust. When you do, it will avoid going through probate and be transferred directly to the person you want it to go to. Placing your property in a trust also means that the transfer will be private and protected from judgments and liens.
3. Prevents Partition
If you own property with one or more people, and it’s not in a trust, then there’s a chance that it could be partitioned and that one or more of the owners may be forced to sell their shares to take care of other interests. When this occurs, it increases the risk for all of the other property owners. However, if the property is in a trust, then it’s not owned by individuals; the trust manages it. This way is great to protect you, your partners, and the property in case issues arise in the future.
4. Protection from Liens and Judgments
Placing your property into a trust protects you from liens and judgments. These can come in a variety of forms, but they are common when you have to pay off a debt. If your property is under your name, then a lien can be placed on the property, and you might have to sell it to make your payments.
However, if you place the property into a trust, you can’t be forced to get rid of it to take care of your debts. This way is great to protect your investment.
5. Discourages Litigation
If a person is going to sue, he will go after someone he assumes has money. Doing so will ensure that he gets a payout and isn’t wasting his time. Should you own a lot of property held under your name, it could indicate to the suing party that you are worth a lot. Thus, it may proceed with its litigation.
By placing your property into a land trust, people won’t know that it’s registered in your name, which reduces the chances of getting sued. Since a trust also protects your property against judgments and liens, it keeps your investments and assets safe.
Investing in real estate can be a lucrative practice, and you need to find a way to protect your assets. Putting your property into a trust is a good way to ensure that your investments are protected now and for generations to come.