Investor · Winnipeg, Manitoba · Member since 2016 · 92 posts · 40 votes
Best structure to minimize exposure as a Canadian for example can I put it under a trust in North Dakotah or Wyoming and then have that control a florida entity to purchase the real estate. The point of this is to limit my exposure in the event of a divorce or incapacity in Canada. Anyone know anything about this or knows anyone who can give me guidance on this.
Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
7mo
@Yousef Reda There are few factors in play here. In order to be able to purchase in a trust, it will likely have to be a cash transaction. There are probably some DSCR lenders that would be willing to do that as well, hopefully a lender will chime in here.
The properties I own are all in trusts, but I either got seller financing and had the seller put the home in the trust (that I created) and then assigned the trust over to my LLC...or I had to place in a trust after the purchase if I did a conventional type loan as the lender would not allow it.
With being a non citizen, there is a new FINcen rule that may apply if you pay cash and/or purchase in an LLC.
In the US, if you are married and purchase property, your spouse has to sign off acknowledging the purchase, so not sure your plan would work for what you are trying to do. I can connect you to a lender locally that can help answer these questions for you if you like.
Lender · Miami, FL · Member since 2025 · 123 posts · 34 votes
7mo
Hi Yousef,
Some thing to consider:
Timing matters for asset protection. If you're setting this up after marriage problems start or a creditor issue emerges, you might not be protected. Asset protection only works when done proactively.
Mortgage financing gets complicated with trusts. Most conventional lenders want to see straightforward ownership. There are lenders that will accept to close in a trust but you narrow your options vis a vis your opportunity for the best terms.
This involves Canadian tax law, U.S. estate and tax law, Florida real estate law, and potentially Wyoming corporate law. You should seek a cross-border attorney and CPA.
If you have any other questions related to the financing side, feel free to reach out.