Trust Basics
Who is the Grantor?
The party in a trust who puts the property into the trust in the first place
What is a deed?
The legal instrument used to transfer property from one person or entity to another
Who is the trustee in a land trust?
The role in a trust responsible for managing the assets and signing the legal documents
Do you need a bank account for your Land trust?
No- it does not require an EIN or a bank account
What is the issue with signing the deed before the trust is signed/executed?
A massive chronological error that causes many counties to reject a deed outright because they check the execution dates
What is a Personal Residence Trust (PRT)?
This specific type of trust is used to hold a primary residence while maintaining homestead protection and tax benefits
Approx. how many counties are in the US?
3009
What is a Wyoming (WY) Trustee LLC?
Regarded as the "Best" option for a Land Trust trustee, this entity keeps your personal name entirely off the public record and offers the most flexibility.
What is the Due on Sale clause?
This clause is generally not triggered by property transfers to a "revocable grantor trust" for Fannie Mae and Freddie Mac-backed loans
Why would we need a re-signing the deed or restating the trust?
to fix it if a client accidentally signs the deed before the trust is fully executed.
What is a Living Trust?
While a Land Trust is ideal for rental properties, this type of trust is designed primarily for estate planning to avoid probate and control assets after death
Why should the Trustee be someone other than the client?
Because deeds are part of the public record, this format—listing both of these individuals/entities—is viewable by anyone searching the property
What is a Nominee Trustee?
This placeholder trustee is considered "Better" than using a relative, but you won't have control of the trust until they officially step down
What is the Bank Secrecy Act?
Beginning March 1, this expanded Act requires reporting for non-financed transfers of residential property with 4 units or less
Why should a client wait to execute a trust or deed prep?
When they plan on refinancing or selling the property
What is a Personal Property Trust (PPT)?
This trust type does not hold real estate interest, but rather holds ownership interests to create a layer of anonymity for an LLC or avoid brokerage professional fees
In which State can you not use a Trustee LLC?
Massachusetts
When does a Trustee resign?
A nominee trustee will automatically resign after this amount of time if a filed deed has not been received
If an entity is on the current Title, what should we ask for?
The entity documents to be uploaded into box
Why would a client deed the property back into their personal name?
If a title company refuses to approve a sale because they can't verify the hidden beneficiary
What are Assignments of Beneficial Interest?
These documents change the beneficiary of a land trust to another entity (like an LLC), but Anderson will not provide them if the swap triggers a change in ownership of more than 50%.
What States can Anderson not prepare deeds?
Illinois, Maryland, New Jersey, and New York
What is a "pocket deed"?
To ensure maximum privacy, you should keep your Trustee Resignation Deed in this unrecorded state until you actually need it for a sale or refinance
Why is Palm Beach special with Land Trusts?
This specific Florida county is a glaring exception to privacy rules, as it publishes the names of trust beneficiaries right on the assessor's website
What are legal description errors?
Misspellings and name changes that can easily be fixed on previously filed documents. But these two critical errors absolutely cannot be fixedmy Anderson