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<div dir="auto">The creation of such a trust to own real property would be a major and expensive mistake.</div>
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<div dir="auto">First: the creation of a trust owned by the same person [including family] would not be a sale that would trigger due on sale and would be exempt from real estate sales tax.</div>
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<div dir="auto">Second: any transfer of 50% or more of trust beneficiary interest would trigger real estate sales tax. Later, interest and penalties will have to be paid.</div>
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<div dir="auto">Third: any transfer of beneficial interest in the trust not to self or family will trigger due on sale mortgage default rights.</div>
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<div dir="auto">Fourth: no title insurance company will insure the transfer of the beneficial interest in the trust without requiring title clearing deeds from the creator and every person designated as grantor, Trustee or beneficiary.</div>
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<div dir="auto">Fifth: forms often used often hide the beneficiaries from recordings. That will likely lead to a title company requirement for a quiet title decree with actual service upon many people and publication, then a year later to reduce risk of a default
being set aside.</div>
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<div dir="auto">Sixth: title companies will add exceptions related to involuntary liens as to every party that was a grantor, trustee or beneficiary.</div>
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<div dir="auto">Seventh: the IRS disregards the device and asserts tax consequences.</div>
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<div dir="auto">Eighth: creditors can set aside conveyances intended to hinder per per 19.40.041.</div>
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<div dir="auto">I would not act as a lawyer for a client who intends a land trust. However, there is a statutory land trust that is registered with the state. I have never seen it used.</div>
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<div>From: Bryce Dille <Bryce@dillelaw.com> </div>
<div>Date: 7/1/20 3:54 PM (GMT-08:00) </div>
<div>To: wsbarp@lists.wsbarppt.com </div>
<div>Subject: [WSBARP] Land trust beneficiary sales </div>
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<div class="PlainText">Has anyone on the list serve had any experience with or knowledge concerningA scenario where the seller of the property puts his property into what is a identified as a “land trust“ In which a third-party is the trusteeAnd the Property
seller is the Sole beneficiary. Then the seller enters into a purchase and sale agreement where where it<br>
Sells and conveys the beneficial interest in the trust. The buyer is now The sole beneficiary And can request the trustee at a later date to sell The property. When the property is put into the land trust the underlying lender is notified that it is being
put into a trust and therefore not subject to the due on sale clause. If any of you have had any experience with this type of transaction please let me know your opinion on the validity and viability of this type of deal to avoid to the due on sale provisions
of the underlying Mortgage.<br>
Bryce H. Dille<br>
Dille Law, PLLC<br>
Office: 360-350-0270<br>
Cell: 253-579-5561<br>
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** Please note that I use the dictation feature of my iPhone and that sometimes everything I say does not get properly translated**<br>
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