Hello Clint, what about if there is a mortgage in our primary residence ( the house is just in my name) Can it be transferred to the residence trust? Also, we claim homestead in our vacation home, because it is only in my wife name and it will be put in a land trust. Do we have to change that as well?
Hi Clint, great info. When you set up residence trust,how this affects the home insurance? Are you required to inform the insurance company and add the trustee/ beneficiary as an additional insurance ?
Clint, what kind of structure would you recommend for House Hacking (i.e. Owner occupied Duplex with tenant)? Your recommended structure of an LLC might not work for asset protection since it mingles personal use with business since you are living there.
It has nothing to do with you living there if it’s not in your name and is an investment. You have to start looking at things as the company is the owner.
Hi ! would you recommend this strat. in NY state or just rely on NY state homestead laws? I am thinking about renting some tents/cabins on the land that my prim. res. is on. And wondering if I should create a separate LLC to operate that rental business to add layer of protection , where I'd act as the manager of the LLC and not as a person/ owner of the land, would it be worth it if its just one or two rentals ? the short term rental platforms do offer liability insurance if smth were to happen to guest on the property, but not sure about home insurance. Maybe I could add an umbrella coverage? And after watching this video I am wondering if homestead law in NY would protect the primary residence in a suit situation if smth were to happen to a camping guest, or is it better to move the primary res in the personal residence trust and go through the expense of a business LLC and personal res. trust? If so, then who would you recommend as trustee to hold legal title. Would it be a family member ? Thank you!
I'm about to buy a personal residence in a Sub to situation. Still use residence trust versus land trust? Where to get a good residence trust document at?
@@dannysmith4649 notarized is the key 🔑 here. That's the stuff I wanted to know, thank you. So as long as it's notarized then it's legal and legit once it's updated?
@@ClintCoons 7:00 mark. ua-cam.com/video/uMuZ7SIqosU/v-deo.htmlsi=5zLeH4863VO5JZ3E&t=420 Correction: I used the term "interest. Should have used "title".
@davidcollier8492 With a personal residence to maintain your homestead exemption, equitable title should remain with the beneficiary and not the trustee as in a land trust.
In my state, you can only have 1 property designated as your "primary residence," which means that you can only claim the Homestead Exemption on 1 property. Now, if I buy a beach house, although it may be a personal residence of mine, it's not my "primary residence" and therefore, it isn't eligible for any such homestead exemption... So for the beach house, should I put it in a land trust or a residence trust?
If you are married, why not just title with spouse as tenants by the entirety? Wouldn’t that get you full protection from creditors if your state allows since my wife would own 100% as well? She would even own 100% of future cash. You don’t have anonymity but if you are ok with that it seems like a plan that would work. Thoughts?
@@ClintCoons what could courts do to not respect ownership if the state law says that the spouse owns 100% of the property? how could creditors possibly get around that if a lawsuit were to be just against one spouse?
My homestead exemption is under $20k. My personal residence is worth over $600k. Homestead exception is a joke in Tennessee and will not protect me in case a creditor comes after me. Why would I want to protect my homestead exception?
So if my trust name includes a portion of the address within the name, when I go to make my offer, the seller is going to see that I included part of the home address within the trust name, which would indicate that I’m very inclined/expecting to buy… That’s not optimal for negotiation… How I can prevent the seller and his realtor from seeing the name of my trust in the offer? Or do you recommend naming the trust something else and then changing it afterwards to reflect property address?
@ClintCoons Clint, I have a series of irrevocable asset protection trusts set up. As the Grantor, I will have my trustee purchase a house in the name of that irrevocable land trust and I will occupy it from time to time. Since the trust will own the house, is it a moot point concerning homestead exemption? As a client of Anderson Advisors, I can have you review that trust and still use your services as a nominee trustee, correct?
Hey Clint, I just watched your video on personal residence and land trust. You made it very clear that the personal residence should go into a residence trust. Is a residence trust the same as a Qualified Personal Residence Trust (QPRT)? If so, is it required to be irrevocable or can it be revocable? If not, am I getting my Google search wrong because from what I see a QPRT is a life-time transfer to reduce gift or estate tax. Is there a better search term other than residential trust that will give me more information on that particular topic? Thanks.
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Clint is going to be me Tax/Asset protection attorney! Solid guy!
Thanks
What's the difference between "reserving usufruct" and "equitable title" as you suggest?
Hello Clint, what about if there is a mortgage in our primary residence ( the house is just in my name) Can it be transferred to the residence trust? Also, we claim homestead in our vacation home, because it is only in my wife name and it will be put in a land trust. Do we have to change that as well?
Hi Clint, great info. When you set up residence trust,how this affects the home insurance? Are you required to inform the insurance company and add the trustee/ beneficiary as an additional insurance ?
Yes you would want to update your carrier
Clint, what kind of structure would you recommend for House Hacking (i.e. Owner occupied Duplex with tenant)? Your recommended structure of an LLC might not work for asset protection since it mingles personal use with business since you are living there.
It has nothing to do with you living there if it’s not in your name and is an investment. You have to start looking at things as the company is the owner.
Always great info!
Hi ! would you recommend this strat. in NY state or just rely on NY state homestead laws? I am thinking about renting some tents/cabins on the land that my prim. res. is on. And wondering if I should create a separate LLC to operate that rental business to add layer of protection , where I'd act as the manager of the LLC and not as a person/ owner of the land, would it be worth it if its just one or two rentals ? the short term rental platforms do offer liability insurance if smth were to happen to guest on the property, but not sure about home insurance. Maybe I could add an umbrella coverage? And after watching this video I am wondering if homestead law in NY would protect the primary residence in a suit situation if smth were to happen to a camping guest, or is it better to move the primary res in the personal residence trust and go through the expense of a business LLC and personal res. trust? If so, then who would you recommend as trustee to hold legal title. Would it be a family member ? Thank you!
I would consider using a Residence trust and a friendly lien from a WY LLC to make any equity disappear. Make the asset appear not worth pursuing.
@@ClintCoons ok thank you I'll look into this
I'm about to buy a personal residence in a Sub to situation. Still use residence trust versus land trust? Where to get a good residence trust document at?
Yes, that would be best if your state had a good homestead law. We set up PRTs.
Can you do a video on HOW to restate a Trust or Operating Agreement?
Example: include dates, record it, etc. Whatever is needed to do it right?
Basically you re-write the document and have it notarized. If you want more help than that, you better call them ;)
@@dannysmith4649 notarized is the key 🔑 here. That's the stuff I wanted to know, thank you. So as long as it's notarized then it's legal and legit once it's updated?
@@AberrantArt Yes, that's right.
I'll definitely look into making a video on how to restate a Trust or Operating Agreement.
Great video. What bad things might happen by shifting equitable interest to Bene?
What part of the video are you referencing?
@@ClintCoons 7:00 mark. ua-cam.com/video/uMuZ7SIqosU/v-deo.htmlsi=5zLeH4863VO5JZ3E&t=420
Correction: I used the term "interest. Should have used "title".
@davidcollier8492 With a personal residence to maintain your homestead exemption, equitable title should remain with the beneficiary and not the trustee as in a land trust.
@@ClintCoons Clear on that, interested to know what asset protection or tax ramifications could result. Equitable title is a tricky concept.
In my state, you can only have 1 property designated as your "primary residence," which means that you can only claim the Homestead Exemption on 1 property. Now, if I buy a beach house, although it may be a personal residence of mine, it's not my "primary residence" and therefore, it isn't eligible for any such homestead exemption... So for the beach house, should I put it in a land trust or a residence trust?
Land trust would be my preference.
What if you live in New Jersey
With a residence trust, should the beneficiary be an LLC or the name of the homeowner?
Your living trust would be the beneficiary
If you are married, why not just title with spouse as tenants by the entirety? Wouldn’t that get you full protection from creditors if your state allows since my wife would own 100% as well? She would even own 100% of future cash. You don’t have anonymity but if you are ok with that it seems like a plan that would work. Thoughts?
That used to work, but now courts are not respecting the ownership like they did in the past, and the protections have been weakened.
@@ClintCoons what could courts do to not respect ownership if the state law says that the spouse owns 100% of the property? how could creditors possibly get around that if a lawsuit were to be just against one spouse?
Super thx Clint! Super useful.
Glad it was helpful
My homestead exemption is under $20k. My personal residence is worth over $600k. Homestead exception is a joke in Tennessee and will not protect me in case a creditor comes after me. Why would I want to protect my homestead exception?
Correct. In your situation you might consider a different structure.
So if my trust name includes a portion of the address within the name, when I go to make my offer, the seller is going to see that I included part of the home address within the trust name, which would indicate that I’m very inclined/expecting to buy… That’s not optimal for negotiation… How I can prevent the seller and his realtor from seeing the name of my trust in the offer? Or do you recommend naming the trust something else and then changing it afterwards to reflect property address?
That is one way of making the offer in the name of an LLC with "and or designated entity" included so you can switch to closing in the trust
@@ClintCoonsBut can your nominated trustee be an LLC with a residence trust? Or does it have to be an individual, like an attorney for example?
Great info. Ty
@ClintCoons Clint, I have a series of irrevocable asset protection trusts set up. As the Grantor, I will have my trustee purchase a house in the name of that irrevocable land trust and I will occupy it from time to time. Since the trust will own the house, is it a moot point concerning homestead exemption? As a client of Anderson Advisors, I can have you review that trust and still use your services as a nominee trustee, correct?
Yes we can serve as a nominee trustee on trusts that we create.
Thank you 🙏
Hey Clint,
I just watched your video on personal residence and land trust. You made it very clear that the personal residence should go into a residence trust. Is a residence trust the same as a Qualified Personal Residence Trust (QPRT)? If so, is it required to be irrevocable or can it be revocable? If not, am I getting my Google search wrong because from what I see a QPRT is a life-time transfer to reduce gift or estate tax. Is there a better search term other than residential trust that will give me more information on that particular topic? Thanks.
It is different. A QPRT has an estate tax component and is only used for property that is unencumbered. Great strategy but different.
In your scenario, are you referring to a revocable living trust for your primary residence opposed to a revocable land trust?
I prefer to use a revocable residence trust for anonymity.
Does a land trust protect from federal or state tax liens?
Hahahahahahaha.
@@Savingusnow Im asking for a friend. LOL
I have a friend who would like to know the answer, as well.
@@hwoodist I have a suspicion that it will protect from the greedy ones. Your name is not on the deed and technically you don't own the property.
It does not
I thought you were going to say a personal property trust 🥴🥴
Ahh but does it make sense?
@@ClintCoons true. That's why I watched till the end 😅