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Why Land Trusts are used in all 50 States! And the History of a Land Trust.

What is a land trust? Why do I need to use a land trust? Both are very important questions. Let us be straight forward with this information. You are working very hard to accumulate property for investment. You put yourself, your family, and your children’s future at risk investing in real estate.

Land Trusts are the first line of defense to insulate yourself from the millions of lawsuits happening every year. Do you want protection from the contingency fee lawyer or would you rather have a bare knuckle fight with him without any defenses in place?

You have probably noticed that it is VERY difficult to find any information about Land Trusts and how they operate. That is why people from all over the United States come to our website to find accurate information about Land Trusts. Most attorneys do not know how to set up and administer a Land Trust (they receive only three hours…if any of trust education in law school).

Illinois land trust law and Massachusetts business trust law set the foundation for all other states to follow. This is the reason why most land trusts today are referred to as, “Illinois TYPE Land Trusts.” See Hart v. Seymur, 147 Ill.598 (Ill. 1893). Rather than drafting their own statutes, most states just model their laws after Illinois and Massachusetts. Thus, with the exception of Florida, Virginia, Texas, North Dakota, Indiana, Hawaii, Arizona, Ohio, and California: there is little statute law in any of the other states on which land trusts can be based. Consequently, Land Trusts are valid in all states except Louisiana (Louisiana’s laws are based on French Civil law so check with legal counsel to determine usage potential) and Tennessee (see below).

Alabama	Indiana		Nebraska	South Dakota
Alaska	Iowa		Nevada	Tennessee	**
Arizona	Kansas		New Hampshire	Texas
Arkansas	Kentucky		New Jersey	Utah
California	Louisiana	*	New Mexico	Vermont
Colorado	Maine		New York	Virginia
Connecticut	Maryland		North Carolina	Washington
Delaware	Massachusetts		North Dakota	West Virginia
Florida	Michigan		Ohio	Wisconsin
Georgia	Minnesota		Oklahoma	Wyoming
Hawaii	Mississippi		Pennsylvania
Idaho	Missouri		Rhode Island
Illinois	Montana		South Carolina

*Louisiana state law does not follow Common Law. While you can still set up a Land Trust in Louisiana, you will need local knowledgeable counsel in addition to our Home Study courses.** Tennessee does not recognize the Illinois Type Land Trust but a Common Law Trust will work instead. You will need local knowledgeable counsel in addition to our Home Study courses.

Land Trusts are the #1 LEGAL way to get your name out of the record books. Start creating your own Land Trusts today and understand the process. Scroll down to the stop sign below.

Still not completely sure about Land Trusts?

Let us look at some Land Trust history.

There are numerous types of “trusts” that have been used in our country over the last 200 years. In fact, Land Trusts and the law behind them followed the settlers over from England. Almost 500 years ago in medieval England, land trusts were used by the common man, “serfs”, to protect their property rights from those who were in power at the time. Trusts served not only to protect assets, but also to avoid taxes and laws of descent. Even though King Henry VIII tried to bypass the use of trusts (to prevent serfs from holding title to property in “trust” and avoiding the responsibilities of land ownership), the medieval courts of England (and most courts since) have upheld the use of land trusts and the rights of their beneficiaries.

Since most American law escheats from English Common Law, the use of trusts and the law supporting them was easily blended into American law. This was around 1795. About 100 years later, a land development company in Illinois wanted to subdivide a large piece of ground that was encumbered by a large mortgage. Since the mortgagee would not release the lots individually until the entire debt was paid off, Chicago Title became involved with the developer. Chicago Title became the trustee of the entire parcel and guaranteed would-be buyers/beneficiaries and prospective mortgage companies that free and clear title would be eventually delivered once enough lots were sold off to pay the mortgage off in its entirety. This worked marvelously.

This is where the rubber meets the road!

Jim and I have done the research and are continuing to do so on a daily basis. This next part shows you something our competitors will not. THE STEPS OF CREATING A FUNTIONING LAND TRUST. We are not asking you to first buy our product to see this, we want to show you how easy it is to do this on your own without any legal education. You can and will create your own Land Trusts IN AS LITTLE AS 5 MINUTES.

The Step-By-Step Process to Forming Land Trust

Ok, so you have read and heard about all the wonderful benefits to using a Land Trust to hide and protect ownership of real estate. But now you ask yourself, “how do I actually set up my first Land Trust?” This report was written by the Hughes Brothers to answer the often asked question, “what exactly do I do next?”

NOTE: The following itemization will make more sense to you if you have read the Step By Step Guide to Create a Land Trust Buy Now

Step One: Printing the Land Trust

Print out the Basic Land Trust Agreement (referred to as T.A. in this text) from your forms Download. Now you have a hard copy that you can fill in and make notes. Once you are done with the first construction of your T.A., you can go back to your computer and finalize an electronic version. The following steps follow the format of the Basic Trust Agreement.

Step Two - Setup Trustee of Trust

Your next step is to put your name in the T.A. as the Grantor (assuming you are the one forming the trust). Then, decide who will be your Trustee?

However, keep in mind that you need to have a Trustee from the same state as the situs of your Trust Agreement. (i.e. Virginia Trustee for a Virginia Land Trust). You might legitimately change the Trustee to an individual in another state after at least one year. Also, remember the best (most private) Trustee is one who lives out of your state (or at least out of your county) and has a different last name than yourself.

Step Three - Name the Land Trust

Naming your Land Trust (What’s in a name?). You may name your trust virtually anything you want as long as the name is not infringing on copy write laws. For example, you could not name your Land Trust, “General Motors” or “General Electric.” You could, however, name your trust the “GM Motor Trust” or the “GE Investment Fund.” Naming your trust is just one little piece of a big legal puzzle that you are creating to hide and protect your assets. It may seem insignificant to some but, if you have ever experienced the prospects of a frivolous lawsuit and avoided the suit because of the name of your trust or the situs of your trust…you become a believer!

Step Four - Revocable vs. Irrevocable

Revocable vs. Irrevocable? Paragraph 8.6 of our Basic Land Trust Agreement requires a statement of the type of Land Trust that you are forming. You need to decide if the trust will be Revocable or Irrevocable. What is the difference? Revocable means that you can change the terms of the Trust Agreement at anytime (by amending the Trust Agreement). Irrevocable means that you cannot change the terms of the Trust Agreement. The trust must remain intact (as you formed it) until the expiration of the trust term (usually 20 years) or the assets are removed from the trust.

There are also some tax considerations to determining whether a Land Trust will be Irrevocable. Some Irrevocable trusts must acquire a federal tax identification number and submit tax returns (and are taxed at a much higher rate than individual tax rates). Therefore, be sure to seek competent tax advice prior to forming an Irrevocable Land Trust.

Step Five - Beneficiary of the Land Trust

Your next decision is to decide who will be the Beneficiary of the Land Trust? Be careful here because if you are currently the owner of the property being placed in to the new Land Trust and you make someone other than you or your spouse the beneficiary, there could be a gift tax problem created by this action. As discussed in the Land Trusts Made Simple course guides, you may want to consider making your personal property trust, LLC or corporation the beneficiary for future asset protection benefits.

NOTE: Some advisors encourage multiple beneficiaries or co-beneficiaries. We have included a sample Beneficiary Agreement to use if you decide to have more than one beneficiary to your Land Trust. However, we do not advise multiple beneficiaries because of the potential liability between co-beneficiaries.

Step Six - Setup the Director

Your next big decision is who will hold the Power of Direction? As you learned in the Land Trusts Made Simple course guides, he who holds the power of direction (over the Trustee) controls the trust’s destiny. So, choose this position wisely! Typically, the Beneficiary is also the Director (at least initially at the formation of the Trust Agreement). The Power of Direction can be retained forever by the Beneficiary or assigned to someone else on a temporary or permanent basis.

Step Seven - Sucessor Beneficiaries

Now comes the part where you decide who will be the Successor Beneficiaries. One of the many benefits of using a Land Trust is the fact that upon the death of the Primary Beneficiary the Successor Beneficiary succeeds to full Beneficiary status immediately upon the death of the Primary Beneficiary (out side of the purview of the probate process). If you are forming a Revocable Land Trust, you may change the successor beneficiary(ies) later if you so desire. However, we still advise you to think through this decision wisely prior to naming your successors as life has a way of changing our situations quickly.

Step Eight - Sucessor Trustees

Similar to number seven above (where you selected your Successor Beneficiaries), now you select your Successor Trustees in your Trust Agreement. Successor Trustees will provide for a smooth transition of title if your Primary Trustee (the initial Trustee that you select) dies, retires, quits or is fired by the Beneficiary. You can name as many Successor Trustees as you want. We suggest always using a P.O. Box for your Trustees addresses.

Step Nine - Private vs. Institutional Trustee?

You may not have a choice in how much you pay your Trustee if you use an Institutional Trustee. Typically, a “professional” trustee will charge 300-500 dollars to set up the trust, 300-600 dollars per year to maintain the trust, 25-50 dollars for each signature that the trustee provides and 25-50 dollars to perform administrative functions (like forwarding a real estate tax bill). One of the reasons why we recommend private trustees is to save on these costs. You can pay your trustee what ever you two agree on but make sure it is reasonable and customary.

Step Ten - State Law for your Land Trust

Your next decision is going to be which state’s Land Trust laws are you going to use as the situs of your trust? If you decide to use Virginia for example, you would put the Virginia statute citation (found in paragraph 8.6 of the Advanced Trust Agreement). Or, if you are going to use Illinois trust law you would use the Illinois Statutes found in paragraph 8.6 of the Basic Trust Agreement. Which state law you are going to use is extremely important to the asset protection benefits you are seeking. We provide extensive research in our course guides to help you make this decision.

Step Eleven - List the Property Held in Trust

List the property to be held in your land trust on the last page of the TA. Be sure to list the legal address as well as the common (street) address. Also, remember to only put one property into EACH trust!

At this point you have made all the big decisions to form your first Land Trust Agreement. All you need to do now is date your Trust Agreement (be sure it is dated prior to the date on the Deed in Trust) and get the signatures of the Trustee, Beneficiary and Notary. Be sure to NOT record the Trust Agreement----only the Deed-in-Trust gets recorded! The Trust Agreement stays in your personal files as a private contract document.

Some final thoughts. Make sure that you insure your property held in trust properly. This is CRITICAL to your receiving insurance coverage if there is a loss claim.


	"Lets take a break from the steps to discuss our competition. While we know there are few other sources of land trust information and even courses helping you create your own land trust. We want to make sure you understand the fundamental difference between ours and theirs. The other courses available can be as low as $97, WOW What A Great Deal! But is it really? We say not, here is why. The last step we showed you was how to FILL IN the trust document. If we left you with that, would you feel comfortable that your trust REALLY was legal? NO!!! A FILL IN approach with no training is what you will get with our competitors. Logically, what training could someone really offer for such a low price when attorneys are charging hundreds if not thousands of dollars TO CREATE ONE LAND TRUST?"

Step Twelve - After Creating Your Land Trust

This is the point where many investors drop-the-ball in the important process of forming their land trusts. Insuring your property properly is a very important part of being a successful real estate investor. If you make changes in the ownership of a property it is critical that you follow a certain process to communicate those changes to your insurance company and insurance agent. Step Twelve is written to give the sequence of steps necessary to report changes, acknowledge changes being completed monitor the necessary coverage and keep all information accurate between you and the insurance company.

Make sure that you insure your property “held in trust” properly. This is CRITICAL to receiving insurance coverage (payment of a claim) if there is a loss/claim. We highly recommend that you sit with your insurance broker, agent or advisor before you buy any property, make a change in ownership or deed your property into a land trust. We provide the step-by-step process for insuring your property held in a Land Trust in our course guides.

See how easy it is to CREATE a LAND TRUST?

Remember how we talked about our competitors and how they give you the FILL IN approach with no training? GOOD, because if you bought their product, you would have received all of the above information. BUT WOULD YOU UNDERSTAND A LAND TRUST NOW?

NO! You would then start looking for an attorney to help you form your land trust and

s(he) would CHARGE YOU hundreds of dollars each time you needed assistance.

The Hughes Brothers System

We make this Simple. In fact we call our courses “Land Trusts Made Simple” which is important when covering an ESSENTIAL component of real estate investing very few talk about. This option being offered is considered our "STARTER KIT", which is a low cost product with everything needed to get powerful coverage over your Real Estate!

Our courses not only cover the steps like we have given you above (A minimum value of $97), but we explain the LOGIC behind each part of the process. THIS WILL GIVE YOU PIECE OF MIND THAT YOUR LAND TRUSTS ARE LEGAL.

OUR GUARANTEE

You will absolutely protect your privacy, cash and assets, have peace of mind and experience freedom that you’ve never felt before. If you don’t see these results in 30 days, or if you are not absolutely happy, for any reason or no reason at all, we insist that you send our system back for a full refund (you keep the downloads FREE) and we will still be friends.

Our system is for savvy investors, for those looking to rid themselves of the fear of losing their hard earned assets and those willing to take immediate action. If that does not describe you, then this system is probably not for you. But if you’d like to find out then click below to order.