I have to take issue with your example of transferring the LT over to the new LLC when you expect a lawsuit. Sure there is no actual record of the transfer. BUT when the other person is going through your books (the ones you're required to turn over upon their request), they will see you accepting rents in the name of defendant LLC for the properties in question. They will also see you using the Old's bank account to pay bills for the subject properties. They will still get access to those properties.
Correct. If the creditor gets a judgement against you the creditor may get access to your books and records. This information would not typically be discoverable in the underlying lawsuit. The purpose of this strategy is to get the other side to take the insurance policy limits because they do not see a lot of assets. The best AP strategy would be to have one land trust held by one LLC. You bring up a great point.
Its not a matter of the size of policy but the exclusions contained therein. Check out this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-acxLZnDViK4.html
another great video. could you make more about how a holding company could be used within the land trust llc structure. other good topics include holding Corp taxed as c Corp, s Corp or llc. and building business credit (duns number, trade lines, ect)
I have a hypothetical situation 1) Initially all properties are in my name 2) Create Multiple trusts with 1 property in each 3)Single LLC is beneficiary for all trusts 4) Trust # 1 gets sued 5)I then assign benefits for Trust #2,3 etc to a new LLC Can the plaintiff demand beneficiary information from all trusts since they were initially in my name? Can they reverse the assignments (done after the lawsuit) to a new LLC ?
A plaintiff can demand anything but the plaintiff must show why he is entitled to the information. If you are using a land trust because the tenant is injured, the other land trusts are not relevant.
great info! any plans on doing a video on LLC operating agreement for real estate investors (flippers...mult member LLC with poison pill provisions) or LLC operating agreement for rental properties?)
What about having each property in its own land trust as the first layer of protection and then have them owned by one llc for each state you own property and then a holding company above all.
Great video Clint! Can the second LLC be in a different state then the trust and property were from? Example I have property 1 in trust A, property 2 in Trust B. Both with Florida LLC as beneficy. I get sued and decide to move Trust B to a MA LLC. Is that fine?
Could you transfer a property l,owned free and clear in an llc, to a land trust in your name… get a refi, then change the land trust with the POC as the beneficiary? Or would that cause an issue
you would transfer your interest into the land trust after you have reviewed the co-op agreement on transfers of interest to make sure it is not prohibited.
Hi Clint. It seems you are still violating the "spirit" of fraudulent transfers and relying on a legal technicality to get around it. Will this still hold up in 2021 and what are the chances opposing counsel will spot it since the original LLC now owns nothing. My argument would be ok why do you have an LLC with nothing in it? What are you up to?
Absolutely. If a judgement is entered against you and you are asked if you moved any assets out of the LLC you would have to disclose. Also, you are not moving all of the trusts. The land trust that is under attack will stay in the LLC..
