Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 5 years ago on . Most recent reply

User Stats

11
Posts
6
Votes
NA NA
6
Votes |
11
Posts

Effectiveness of Land Trust in Texas for anonymity

NA NA
Posted

There is no shortage of content on the benefits of a Land Trust but I am curious as to whether there is truly an anonymity shield created by using one, especially in TX. 

I ask because it seems like a majority of investors will purchase property in their own names and then transfer title to a Land Trust. Wouldnt the initial recording of title in the individuals name be a dead giveaway that the individual is in the chain of title and most likely owns the property? Additionally, it is quite easy to lookup an address on the appraisal districts website followed by a lookup an the TX county clerk website and one could put the data from both together to infer the chain of title. 

So I am finding it hard to understand how an investor who manages their own properties can enjoy the benefits of anonymity using a Land Trust. Maybe I am missing something obvious but I wanted to post my concern to get some opinions.

Thanks.

Most Popular Reply

User Stats

1,407
Posts
754
Votes
Lance Lvovsky
Pro Member
  • Accountant
  • Fort Lauderdale, FL
754
Votes |
1,407
Posts
Lance Lvovsky
Pro Member
  • Accountant
  • Fort Lauderdale, FL
Replied
Originally posted by @NA NA:

There is no shortage of content on the benefits of a Land Trust but I am curious as to whether there is truly an anonymity shield created by using one, especially in TX. 

I ask because it seems like a majority of investors will purchase property in their own names and then transfer title to a Land Trust. Wouldnt the initial recording of title in the individuals name be a dead giveaway that the individual is in the chain of title and most likely owns the property? Additionally, it is quite easy to lookup an address on the appraisal districts website followed by a lookup an the TX county clerk website and one could put the data from both together to infer the chain of title. 

So I am finding it hard to understand how an investor who manages their own properties can enjoy the benefits of anonymity using a Land Trust. Maybe I am missing something obvious but I wanted to post my concern to get some opinions.

Thanks.

I will give you a real example based on a client. Client has a Land Trust that owns a condo in Colorado. It is a CO Trust too. Purchased the real estate in name of Land Trust. The Trustee is an LLC. With the LLC Trustee, the client's name does not show up on the deed to the property.

From a tax perspective, the Land Trust can be drafted such that all income gets reported on the individual income tax return (Form 1040). One must consider whether the LLC itself has to file, but that is another conversation, and one you should have with your tax advisor.

  • Lance Lvovsky
  • Loading replies...