1031 Exchange


 Why You Need a
Title Holding Trust!
            Sponsored by:




       www.sccombank.com/


          W...
1031 Exchange


                                                   Webinar Etiquette
                                     ...
1031 Exchange


                                                   About our Sponsor
                                     ...
1031 Exchange


                                                   History of the Land Trust
                             ...
1031 Exchange


                                                   Your Title Holding Trust
                              ...
1031 Exchange


                                                   Parties to the Title Holding Trust
                    ...
1031 Exchange


                                                   Parties to the Title Holding Trust
                    ...
1031 Exchange


                                                   Benefits of a Title Holding Trust
                     ...
1031 Exchange


                                                   Benefits of a Title Holding Trust
                     ...
1031 Exchange


                                                   Benefits of a Title Holding Trust
                     ...
1031 Exchange


                                                   Benefits of a Title Holding Trust
                     ...
1031 Exchange


                                                   Benefits of the Title Holding Trust
                   ...
1031 Exchange


                                                   Benefits of a Title Holding Trust
                     ...
1031 Exchange


                                                   Benefits of a Title Holding Trust
                     ...
1031 Exchange


                                                   Benefits of a Title Holding Trust
                     ...
1031 Exchange


                                                   Title Holding Trusts do NOT:
                          ...
1031 Exchange


                                                   Contributing Property into Trust
                      ...
1031 Exchange


                                                   Beneficiaries/Power of Direction
                      ...
1031 Exchange


                                                   Financing Property in the Trust
                       ...
1031 Exchange


                                                   Management of the Property
                            ...
1031 Exchange


                                                   Role of the Trustee
                                   ...
1031 Exchange


                                                   Are You Ready to Take the First Step in
               ...
1031 Exchange


                                                   Upcoming Webinars




Copyright 2006-2009, Exeter Fiduc...
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Why You Need A Title Holding Trust (Land Trust)

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* Does your name show up on the public record?
* Are you afraid of litigation because of your real estate investments?
* Are you afraid of liens or judgments from co-owners?
* Are you worried about privacy?
* Are you concerned about ancillary probate?

WOULD YOU LIKE TO KEEP YOUR REAL ESTATE OWNERSHIP PRIVATE?

Have you considered a Title Holding Trust (Land Trust)?

Learn how to protect yourself by using a Title Holding Trust
(Land Trust). We will be discussing the benefits and
advantages of: buying, owning, managing, and
selling real estate or any personal property through a
Title Holding Trust (Land Trust).

Why a Title Holding Trust?

Provides confidentiality and privacy of ownership
Protects against liens and judgments
Can avoid litigation
Annonymous negotiations

Who Needs One?

Investors, developers, contractors, realtors – executives and managers exposed to litigation – politicians – celebrities, entertainment professionals – judges, law enforcement – stalking victims - buyers, negotiators.

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Why You Need A Title Holding Trust (Land Trust)

  1. 1. 1031 Exchange Why You Need a Title Holding Trust! Sponsored by: www.sccombank.com/ William L. Exeter President and Chief Executive Officer Exeter Fiduciary Services, LLC Exeter 1031 Exchange Services, LLC
  2. 2. 1031 Exchange Webinar Etiquette • Please DO NOT – Use speaker phones – Place call on hold (on hold music) – Use mobile phones (use land line) • Please do ….. – Ask questions as they come up: • Raise your hand, or • Use the chat function Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 2
  3. 3. 1031 Exchange About our Sponsor • Seacoast Commerce Bank is an institution that specializes in providing unique financing and cash- management solutions to specialized industries, professionals, and individuals throughout California. • Seacoast Commerce Bank had the highest “Capital Ratio”(per the FDIC) , a sign of strength, out of all publically traded banks in San Diego County (as of December 2008), which is important for your safety. • For more information contact: Richard Sanborn, President & CEO Email: rsanborn@sccombank.com Phone: 619-409-5762 Web: www.sccombank.com Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 3
  4. 4. 1031 Exchange History of the Land Trust • Dates back to the early 1500’s under King Henry VIII • Illinois Land Trust introduced in the late 1800’s • Title Holding Trusts introduced in California in early 1900’s • Referred to as Title Holding Trusts, Land Trusts, Blind Trusts, Business Trusts Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 4
  5. 5. 1031 Exchange Your Title Holding Trust • Non-recorded trust agreement • Fully revocable at anytime – Can terminate or amend trust at any time – Can terminate or amend even after death • Grantor trust – Similar to Family Living Trusts – And yet, has significant differences • Pass-thru entity • Disregarded entity Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 5
  6. 6. 1031 Exchange Parties to the Title Holding Trust • Trustor (Grantor or Settlor) – Person/entity setting up the trust • Beneficiary (Primary) – Living Trust – no present interest – Title Holding Trust – Present interest (controlling interest) • Successor beneficiary – No current interest in trust – Future interest only – Always name one if beneficiary is natural person (i.e. can die) Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 6
  7. 7. 1031 Exchange Parties to the Title Holding Trust • Trustee – Exeter Fiduciary Services, LLC – Has no discretionary authority – Beneficiary must provide written authorization & direction for Trustee to act • Power of direction – General (unlimited) – Specific (limited) Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 7
  8. 8. 1031 Exchange Benefits of a Title Holding Trust • Confidentiality/Privacy of Ownership – Those concerned about litigation: • Executives, managers, highly compensated individuals, etc. • Investors, realtors, developers, contractors – Those worried about privacy/stalking: • Politicians, judges, law enforcement, celebrities, stalking victims – Acquisitions/Negotiations • Example: Walt Disney/Disneyworld Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 8
  9. 9. 1031 Exchange Benefits of a Title Holding Trust • Living Trust vs. Title Holding Trust – Similar, and yet very different! • Living Trust – Trustee holds legal, equitable and beneficial interests of ownership • Title Holding Trust – Trustee holds only legal/equitable title – Beneficiary holds beneficial interest – Beneficial interest is personal property; not real property (very important) Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 9
  10. 10. 1031 Exchange Benefits of a Title Holding Trust • Avoids probate administration • Avoids ancillary probate for out of state real property owners • Easy succession of ownership • Estate planning benefits – No need to change current plans – Integrates with existing trusts Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 10
  11. 11. 1031 Exchange Benefits of a Title Holding Trust • Ease of transferring ownership – Partial distribution of property – Easy to make gifts to kids or others – Assignment of beneficial interest • Considered conveyance of underlying property held in Title Holding Trust Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 11
  12. 12. 1031 Exchange Benefits of the Title Holding Trust • Protection against liens and judgments – Co-owners of real estate – Real vs. personal property interest • Avoids clouds against title – Death, Divorce, Bankruptcy – Litigation, Settlements, judgments, – Federal, State vs. local tax liens • Income tax • Property tax • Avoids partition actions/charging orders Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 12
  13. 13. 1031 Exchange Benefits of a Title Holding Trust • Multiple beneficiaries – Ease of administration – Executing documents • Purchase and sale agreements • Loan documents • Notes, deeds, etc. • No registered agent for service • Tax Considerations – Pass-thru entity – Disregarded entity Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 13
  14. 14. 1031 Exchange Benefits of a Title Holding Trust • Tax Considerations – Pass-thru entity – Disregarded entity • Special Income Tax Strategies – Section 1031 (tax deferred exchange) – Section 1033 (involuntary conversion) – Section 121 (tax free exclusion) – Section 453 (installment sale treatment) Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 14
  15. 15. 1031 Exchange Benefits of a Title Holding Trust • Cost efficient – Annual costs – Title insurance premiums • Privacy – Purchases – Sales – Management – Holding – Negotiations – Financing, refinancing Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 15
  16. 16. 1031 Exchange Title Holding Trusts do NOT: • Provide liability protection – Minimizes risk of litigation – No liability protection once sued • Avoid taxes if otherwise due – Income, capital gain, gift taxes – Property taxes • Avoid due on sale clauses – Full or partial transfer – Loan documents • Avoid reassessment for property taxes Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 16
  17. 17. 1031 Exchange Contributing Property into Trust • Referred to as “funding the trust” • Title Holding Trust should take title – At acquisition, not later – Otherwise provides only limited confidentiality/privacy – True owner should never show on title • Ensure all documents reflect Trustee • Environmental indemnity agreement • Evidence of insurance Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 17
  18. 18. 1031 Exchange Beneficiaries/Power of Direction • Primary beneficiary • Successor beneficiary • Power of direction • Change or update at any time Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 18
  19. 19. 1031 Exchange Financing Property in the Trust • Many lenders will not lend while property is held in trust – Conduit lenders – Portfolio lenders – Underwriting on Beneficiary • Note and Deed of Trust executed by Trustee (Exeter Fiduciary Services, LLC) • Beneficiary guarantees loan • Beneficial interest pledged as collateral Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 19
  20. 20. 1031 Exchange Management of the Property • Very flexible – Key factor is amount of confidentiality and privacy desired by beneficiary • Acquisition • Property management • Leasing • Selling – Record Grant Deed, or – Assign beneficial interest in Trust Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 20
  21. 21. 1031 Exchange Role of the Trustee • Legal vesting on public records: – Exeter Fiduciary Services, LLC, as Trustee for THT No. XX XXXX • No discretionary authority – Written direction required • Executing notes, deeds, leases, etc. • Preparing Trustee’s certificate • Corporate Trustee; not individual • Trustee has no liability Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 21
  22. 22. 1031 Exchange Are You Ready to Take the First Step in Protecting Your Properties? • Set-up a complimentary consultation with one of our trust officers • Follow-up email with links – Copy of Power Point – White paper with 24 benefits – The Exeter Exchange Newsletter • Follow-up survey • Thank you for attending – we look forward to helping you protect your properties. Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 22
  23. 23. 1031 Exchange Upcoming Webinars Copyright 2006-2009, Exeter Fiduciary Services, LLC. All Rights Reserved. (866) 393-8370 23

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