Hey Moguls, Randy Hughes, Mr. Land Trust himself is back again continuing his awesome series in which he breaks down all the details about Land Trusts into easy-to-understand installments.
We have learned a lot about Land Trusts over the past 10 lessons. From what a Land Trust is and how it’s formed… to who (or what) should be the Beneficiary. In fact, in Randy’s most recent post, he told us everything we needed to know about using a limited liability company as the beneficiary of your land trust. Loads of good info there, so check that out.
So far we’ve been covering basic details about the everyday Land Trust. And, to start from the beginning of the entire series, here’s Part 1.
But now, it’s that time again to let Mr. Land Trust take it from here…
From Randy Hughes…
In this lesson we are going to go beneath the surface, drop off the radar and discuss one of the SHOCKING asset-protection techniques that only I teach in my infinite wisdom (after using Land Trusts in my business for more than 35 years).
So, what’s so important about picking the right name for your Land Trust?
Shouldn’t you name your Land Trust after your first-born or perhaps the street address of the property held in the trust? Furthermore, isn’t there a registry somewhere that you must go to get the name of your Land Trust approved (like Corporation names)?
NO!
As I have mentioned before in this series, Land Trusts do not have to register ANYWHERE ON PLANET EARTH! This means that you are free to name your trust anything you want (as long as you don’t infringe on the copyrights of others).
You could name your Land Trust the “Orange and Blue Land Trust number 1234.” Or, “Billy Bob’s Education Fund Land Trust.” Or, “The South Florida Consortium of Multi-Million Dollar Investors Trust.”
Play the Name Game
Of the three trusts mentioned above, which one would YOU want to sue? Which one seems like it might not put up with your frivolous lawsuit and might actually have the funds to sue you back (for wrongful litigation)? If you were a contingent fee attorney trolling the financial waters looking to sue someone today, which one (or two) of the three trusts mentioned above look like easy targets?
Are you getting my drift? It is all about perception.
Attorneys do not like to sue entities that they have no knowledge of (nor can they find information about on the internet). Contingency fee lawyers especially like easy prey with hard (ascertainable) assets.
Since the beneficiary of a Land Trust is not public information, most contingency attorneys will shy away from suing them because they do not know the “house power” behind the trust – is the beneficiary an individual with little assets – other than an insurance company that will settle quickly for an easy payday?
Or, is the beneficiary someone – or an entity – with deep pockets that will put up a huge fight and do everything in their power to make the plaintiff’s life miserable until the litigation is over (perhaps years down the road)?
Seems counter-intuitive, doesn’t it?
Out of the millions of lawsuits filed last year in America, 97% were settled out of court. Only 3% went to trial! This means that most lawyers don’t want to go to trial, they just want to settle, get a quick buck and move on to the next sucker.
You remove yourself from the “sucker list” by putting your property into a Land Trust and naming your trust something big and intimidating. I know this may sound silly, but I have seen this work in real life and have been amazed by this technique.
What Did We Learn?
WOW, a lot. Who would ever think that just by giving your Land Trust a strong and intimidating name you would avoid frivolous lawsuits?
We learned that because Land Trusts are not registered anywhere, we have the freedom to give them names that are unique and defensive in nature.
We also learned that naming a Land Trust properly gives us an edge against the bad guys who try to intimidate us into giving them our hard earned money/equity/income.
Good stuff!
Well, stay tuned as we continue this great series with more helpful Land Trust info soon.
In the meantime if you want to continue your Land Trust education, please feel free to enjoy a webcast training I’ve prepared on how to create your first Land Trust.
Randy Hughes, aka, Mr. Land Trust
Questions, Comments?
Got any Land Trust thoughts, comments or questions? Let me hear from you in the comments section below.
Dream up some intimidating sounding names for your future Land Trusts.
Ask other real estate investors what sounds intimidating to them.
Write down all the unique Land Trust names you can think of so they will be available to you when you need them – when you form your next Land Trust.
Randy Hughes
bought his first single family home for rental while in college in 1969 and hasnít looked back since. Heís since purchased over 200 houses, and has developed a special expertise focused on how to protect your assets and how to become more private with your personal life through the creative, 100% legal and ethical use of Land Trusts. On the topic, Randy has written extensively for national real estate publications, has published a number of Privacy and Asset Protection books including Land Trusts Made Simple, and has been a licensed Continuing Ed Instructor for the Illinois Assoc. of Realtors for 20+ years. He even teaches land trust law and administration to attorneys.