I purchase a property all-cash with my own name. I would like to have it in an LLC, but it's just not cost effective as it's in California and the $800 annual fee would kill my cash-flow. Would it be beneficial to drop it into a trust even if the closing took place in my name? It would seem that I would still be easily discoverable as the owner if it was closed in my name previously. I've read through other forum posts, but couldn't find a definitive answer.
Hi @Luke M.
What do you want to achieve here? The main reason that people think about using a trust to hold property is for anonymity. In this scenario, as you anticipate, you probably will not be pleased with the outcome.
First, the title record will show that Luke M. bought the property, and then transferred it, for no consideration, to Luke M. as trustee of the Secret Prosperity Trust. Anyone who wants to find out who owns the property will see you on title currently as trustee, and they will see you in the title record as having transferred it into trust.
If you want to use a trust to keep your identity secret, the property must be deeded directly into the trust from escrow - and you have to use a third party as trustee, because the trustee's name will be on title.
Good luck in your investments!
Thanks Josh, I've got an offer on another one, and if they bite, I'll do it properly this time. Thanks for the info.
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