What you missed June 2008 Meeting
by Robert Davis
Jack Shea gave an excellent talk about the Florida land trust, and the recent changes that all seem to be for the good. The Florida Land Trust now has many benefits for the investor. Jack has been using the land trust in Florida for decades, and claims the new revised Statute is better than ever. It clarified many things with regard to trustee actions, putting mortgages into a land trust and allowing the lender to be the trustee. It allows a homesteaded property to be put into a land trust without losing the homestead exemptions. Additionally, it has a section on how to replace a trustee. The new revision also states the trust never has to be shown at a closing.
The land trust is a valuable tool for managing rentals as well. A property in a land trust does not divulge who actually owns the property. The trustee holds the title, but the beneficiaries of the trust are who gets the benefits of the property. Jack also talked about having a ‘Director’ of trust who can direct the trustee to act regardless of what the beneficiaries do. The trustee is also immune from liability unless the trustee is grossly negligent in duties or actions.
He went on to list other benefits of using a Florida land trust. In addition to having some privacy of ownership, other benefits include it helps avoid probate, judgments cannot attach to it, partnerships are easier to allocate, it’s easy to change beneficiaries, it limits liability, to name a few.
Finally, Jack mentioned some things we should do and things not to do. For example, we should always sign the trust and have 2 witnesses and a notary. Why? The land trust may be used like a will in case of the demise of the beneficiary.
Always include the powers of F.S. 689.071 in the trust. Name successor trustees and beneficiaries. Have a management agreement.
Jack concluded with some things not to do with a Florida land trust. We should not act as our own trustee, (be a trustee when you are the beneficiary), nor record or allow the trust to be recorded. We should not show the trust to anyone. We should also not disclose who our trustee is. He ended his talk by saying how the Florida land trust gives us some security through privacy, helps avoid probate and gift taxes, and gives better control over our properties. Jack gave us an entertaining and very informative talk on the Florida Land Trust, and periodically gives a structured class on this subject. To find out about his classes, contact Able Property Co. at 727-581-7000.
Past What You Missed
See past meetings schedule here