- Hi, Clint Coons here with Anderson Business Advisors,
and in this video, we're gonna discuss,
how do you name your land trust?
Okay, let's get started.
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So, you're gonna set up a land trust for the first time,
or maybe you've been doing it for a while,
and you're trying to figure out,
what do you wanna name your trust?
Now there are many different ideas
on how you come up with a name for a land trust.
And I've talked about it before over the years,
and typically, it's been your name
and after the property address, some way somehow,
but always remember,
do not use the word land trust in the name.
For example,
I was buying a property on 1465 eighth street,
maybe I would call it the 1465 Trust,
just so that I know that the property
held inside of that trust relates to that trust itself,
because you know, I'm using part of the address there.
So when you're naming land trust,
it's often a good idea to use a portion of the address
in the trust name,
and don't use the word land like I just gave you.
So it's a 1485 Trust,
that is gonna hold,
the property on 1485 East street or eighth street,
whatever I had said.
So that would be the name of my trust.
Now what's crucial here, is that,
as you know, when you create land trust,
here's my land trust,
and it's gonna hold this piece of property,
and initially you're gonna be the beneficiary down here,
and you should be using a nominee trustee.
Let's say we're using a Wyoming LLC here,
as our trustee of our trust.
Now, when we've set this up at this point in time,
we don't have any asset protection.
You know, I got a few comments,
not too long ago on my YouTube channel
from an individual that said,
"Hey, I have seven properties in different land trust,
"and all held by an LLC, I have asset protection."
No you don't,
because if anything goes wrong with any one of those trusts,
the person that sues can go right through the trust
and nail you individually.
And if you have other trusts there,
you're gonna lose those trusts as well.
So, when we set these things up,
what we wanna do,
is get the beneficial interest out of our name, right?
We wanna put it into a limited liability company
for asset protection purposes,
'cause we don't wanna be liable for our property.
That's the whole purpose of setting this up.
This gave us anonymity,
now we wanna have, asset protection.
So you're gonna create then, a limited liability company,
to own that beneficial interest.
And you're gonna assign it over.
I hear is what how this all ties back in,
because you thought,
"Hey, Clint, I thought you were talking
"about naming a trust."
I am.
Well, when you name that trust,
you should also name the limited liability company,
the exact same name,
1485 LLC.
'Cause I want these two to be the same,
'cause it's gonna help you out when you sell the property
at a later date.
Be sure to check out my video
on how to sell property in a land trust,
where I discuss this in detail.
You'll understand the mechanics behind it.
So your trust, if you're setting up this way,
land trust first followed by LLC,
use the property address or use some portion of it.
Don't drag it out.
If this was 1485
East Green Boulevard,
I would not use all of that in my trust name,
it's just too many words to put down in there.
So, truncate it.
Now, let's assume it's just the opposite, right?
You haven't set up the trust yet,
but you've already created the limited liability company.
Maybe you have an LLC, it's been around for a while,
and the name of your LLC
is
MI5 LLC.
Okay, so you came up with this nifty little name,
MI5 LLC,
and now you're gonna create a trust to hold property
on 1485 Green street.
So what do you do?
Create the 1485 Trust?
No.
In this situation,
if I already have the LLC,
if this came first,
then I would highly recommend
when you create this trust,
that you plan to assign to this limited liability company,
you call this one,
the MI5 Trust,
right?
Make a match.
I wanna see them match.
Now, the only time I wouldn't do this,
is that if I'm building out an anonymity structure,
and this LLC does not have anonymity,
it's associated back to me because when you created it,
you didn't set it up the way we talk about,
where I've taught you many times
to just create a Wyoming LLC, first.
That's your base entity that offers you anonymity,
then you set up this one as a member managed LLC
pointing back to that Wyoming company,
so they don't know who you are.
And then you set up your trust.
So, if you did it this way, you're golden.
If you didn't, then the problem is,
if I set up the MI5 Trust to be held by the MI5 LLC,
and I'm associated with this MI5 LLC,
then you're gonna lose the anonymity.
And that's the Achilles' heel in this structure.
So, point of reference then,
if this entity here, if you want anonymity,
and this one has anonymity, then name them the same.
If it doesn't have anonymity and you still wanna use it,
then come up with a different name for your trust
so they can't tie it back together.
So to sum it all up, here's what I'm getting at.
When you're setting up your trust,
you wanna make sure if it's going
into a limited liability company that's existing,
name the trust after the existing LLC.
Understand more about this,
watch my video on selling property inside of a land trust.
If you have not yet set up the LLC,
choose part of the property address in the name,
it just makes it much simpler,
from my perspective to remember which properties
in which trust.
Now, some people choose not to do it that way,
they think that possibly,
an attorney looking on the public record
might assume that you set up a trust and put it into there.
I don't think that they're that smart
'cause I've dealt with lots of attorneys
when it comes to this stuff,
and they reach out to me as a nominee trustee,
thinking it's my property and all that.
So, if that is your concern,
then of course you're gonna have to come up
with some other naming convention that works for you.
But what you should not do, is make them all tie together.
I've given an example a few times
where a client in Florida set up
the red frog, green frog, brown frog,
purple frog, orange frog, black frog,
whatever frog trust,
and he had all these trusts named after frogs with colors.
Anybody's gonna kind of figure out
that it must be the same person with the frog fetish
creating these trusts.
Don't be the frog faddish person,
come up with different names for them.
All right guys,
and like I said,
there some of my other videos,
hey, if you like what you see here,
give me a like, any comments,
be sure to add those comments down below,
and if you have not yet subscribed to my channel,
make sure you subscribe.
Alright, everyone else take care,
best of luck with your real estate investing.
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