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Updated almost 5 years ago on . Most recent reply
Effectiveness of Land Trust in Texas for anonymity
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.
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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.