[WSBAPT] Purchasing property so it is hard to trace ownership

Thu Mar 18 16:02:35 PDT 2021

Thank you, Megan. I appreciate the tip. That is critical!

I have been meaning to email the listserv again to report what I have learned. Thanks to everyone who responded. This is a quick summary of my research-there are of course, lots of details I am not covering, etc.

  1.  If you want to keep a property purchase truly anonymous, you need to involve a third party.
  2.  A trust will work, as long as the trustee is a third party unrelated to the person requiring privacy.
  3.  If you use a trust this way and have a third party as the trustee, and plan to have the trustee resign in favor of the grantor/s, you still have issues with the assessor's office, as Megan points out above
  4.  An LLC with a third-party governor is the best bet. The names of the owners of the LLC/assets can be kept off the documents that are filed with the Secretary of State as long as the owners are not members or managers of the LLC.
  5.  Using the LLC plan, you can do an operating agreement (not filed) that explains the deal, so there is a contract of sorts in place to protect the owners.
  6.  Seems like using an attorney as the governor would also be a smart move, so that the governor is less likely to run off with the assets.
  7.  Finally, and critically, this only works if the client/s dot every I and cross every T. If they do all this, and then register to vote at the property address, or sign up for a credit card using that address, the whole house of cards will come down.

Hope this helps someone!

Sarah Jael Dion
PRINCIPAL
skellenger bender
TRUST AND ESTATE PRACTICE
Estate Planning | Probate

PHONE 206.623.6501 | FAX 206.447.1973
sdion at skellengerbender.com |<mailto:sdion at skellengerbender.com%20%7C>www.skellengerbender.com<http://www.skellengerbender.com/>
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Megan S. Farr
Sent: Thursday, March 18, 2021 1:51 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Purchasing property so it is hard to trace ownership

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Also, consider who would be listed on the REETA to receive property tax statements.  I would consider using a third party trustee/LLC manager to also list there and keep them in place so the property tax system doesn't pick up your client's name and address, which would then be searchable.

Megan S. Farr
Member | Farr Law Group, PLLC
1110 Stevenson Avenue, Ste. 100 | P.O. Box 890 | Enumclaw, WA 98022-0890
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Sarah J. Dion
Sent: Monday, March 15, 2021 5:19 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Purchasing property so it is hard to trace ownership

Phil, I agree- can't unwind any way around this issue without the PCs naming a third party as trustee.

Mark, that is a good workaround, thank you for adding that idea. Now I am trying to recall everything they said in law school about using "straw men!"

Sarah Jael Dion
PRINCIPAL
skellenger bender
TRUST AND ESTATE PRACTICE
Estate Planning | Probate

PHONE 206.623.6501 | FAX 206.447.1973
sdion at skellengerbender.com |<mailto:sdion at skellengerbender.com%20%7C>www.skellengerbender.com<http://www.skellengerbender.com/>
1301 Fifth Ave., Suite 3401 | Seattle, WA 98101
Pronouns:  she/her
NOTICE:  This communication and the information contained within, along with any items attached as an enclosure, are privileged and confidential.  This communication is intended solely for the use of the individual(s) named above.  If you are not one of the intended addresses or you believe you may have received this communication in error, you are hereby notified that any consideration, dissemination or duplication of this communication is strictly prohibited.  In addition, you shall not print, copy, retransmit, disseminate, or otherwise use this information in any form without first receiving specific written permission from the author of this communication.  If you have received this communication in error, please reply to the sender indicating that fact and delete this message from your system immediately.

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Mark Reinhardt
Sent: Monday, March 15, 2021 4:47 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Purchasing property so it is hard to trace ownership

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The trustee's name on the real property deeds tends to be the problem.  I have had trust with a generic name and have a temporary trustee serve long enough to have the QCD filed, then resign in favor of the trustors.

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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Philip N. Jones
Sent: Monday, March 15, 2021 4:19 PM
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Subject: Re: [WSBAPT] Purchasing property so it is hard to trace ownership

You might consider an LLC with their attorney as the sole manager.  A trust could also be used with their attorney or some other person as the trustee.  But I do not know of any way to set up such an arrangement without involving a third party.
Phil Jones

Philip N. Jones
Duffy Kekel LLP
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Sarah J. Dion
Sent: Monday, March 15, 2021 3:43 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Purchasing property so it is hard to trace ownership

Hi all-

PC and spouse want to purchase real estate in such a way that it is difficult for anyone to determine ownership. In this situation, the privacy concern isn't paranoia--  there is a child and a no contact order with a dangerous individual, so it is critical that no one be able to search for their address using their names. They are part of a program in WA called Address Confidentiality.

The first thing I thought of is a revocable trust with a name that does not include PCs' names, but I am wondering if ultimately, the name of the trustee/s will need to be on any documents that are recorded. Does anyone know what the limitations on this process are? Ideally, neither of their names is on any documents that are searchable.

I would also love to know if there is any way to add a layer of protection to this to make it more difficult to trace without giving up control of the trust to a third party?

Thanks for any advice you have!

Sarah Jael Dion
PRINCIPAL
skellenger bender
TRUST AND ESTATE PRACTICE
Estate Planning | Probate

PHONE 206.623.6501 | FAX 206.447.1973
sdion at skellengerbender.com |<mailto:sdion at skellengerbender.com%20%7C>www.skellengerbender.com<http://www.skellengerbender.com/>
1301 Fifth Ave., Suite 3401 | Seattle, WA 98101
Pronouns:  she/her
NOTICE:  This communication and the information contained within, along with any items attached as an enclosure, are privileged and confidential.  This communication is intended solely for the use of the individual(s) named above.  If you are not one of the intended addresses or you believe you may have received this communication in error, you are hereby notified that any consideration, dissemination or duplication of this communication is strictly prohibited.  In addition, you shall not print, copy, retransmit, disseminate, or otherwise use this information in any form without first receiving specific written permission from the author of this communication.  If you have received this communication in error, please reply to the sender indicating that fact and delete this message from your system immediately.

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