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rjb
Pilot/New Investor
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Virginia Land Trust
Friday, February 29 2008 10:35 AM
Hello All,
Quick question. Personally, I put all of my properties in the Virginia Land Trust with a Virginia Trustee. However, a friend would like to put their primary residence in a trust here in California. They will have a California Trustee as well. Can I still develop a Virginia Trust just as a smoke screen for him. I know it won't be valid in Virginia Court, but won't it revert back to California Laws once it is discovered that the Trustee resides in California? Or will it be null and void all together. Any word on land trusts on primary residences and forfeiting your Homestead Rights? Thanks.
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Randy Hughes
Master Advisor-39 years of experience
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Re:Virginia Land Trust
Friday, February 29 2008 07:14 PM
Pilot,
I understand what you are trying to accomplish and applaud your creativity. You are correct in that if you set up a virginia land trust but have a california trustee, that a judge would likely deem it a "dry trust." Meaning it would be null and void (in california and virginia). However, this is not always a bad thing. If a trust is deemed void it just means that the trustee is not in title...the beneficiary is. Does this make your mind wander?
Randy Hughes
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Bill G
investor
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Re:Re:Virginia Land Trust
Thursday, April 03 2008 03:33 PM
There is no problem in Virginia with a California trustee for a land trust. Been there done that 100 times. We've had two federal law suits settled in our favor in Virginia (one settled ooc and one set aside).
I do business in virtually every state (over 4,000 transactions) and our trustee and its predecessor are in California.
Bill Gatten
Authorized by statute, see Va. Code Annotated ??55-17.1-Supp 1964), Burns Vs, Equitable Assocs, 220 Va. 1020, 265 (1980). See also 'The Virginia Land Trust, an overlooked Title Holding Device for Investment, Business and Estate Planning,' 30 Wash. & Lee Law Revue 73 (1973)
The trustee of al land trust need only function as actively dealing with matters of the property in order to avoid characterization as a dry or failed trust (directive power of sale, monitoring management, maintaining records, forwarding correspond-ence, answering legal charges, etc.). No requirement for domesticity of trustee so long as it is not a depository institution or a trustee appointed to manage financial affairs of the beneficiaries.
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Randy Hughes
Master Advisor-39 years of experience
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Re:Re:Re:Virginia Land Trust
Thursday, April 03 2008 04:25 PM
Bill,
To make a land trust valid on its face the trustee should be in the same state as the trust law that you are using...at least initially. I believe you would be ok with changing after at least one year, but i would NOT have a Virginia trust with a California trustee initially. Judges have been known to set these trusts aside as invalid.
Randy Hughes
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BC
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Re:Re:Re:Re:Virginia Land Trust
Saturday, July 18 2009 12:20 PM
Couldn't you form a Virginia LLC to act as a trustee?
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Randy Hughes
Master Advisor-39 years of experience
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Re:Re:Re:Re:Re:Virginia Land Trust
Saturday, July 18 2009 12:43 PM
Yes, you could set up a VA LLC to act as the Trustee but it might be cost prohibitive compared to finding an individual to serve or using an existing Trustee service company to serve for you.
Randy Hughes
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