Are Land Trust Usefull

[Rick Ortiz]

I came across article about "Land Trust", maybe tbey go by different names in different states. But the interesting partto mg understanding is someone can transfer their property to the trust. The same person (me) can be the Trustee and Beneficiary and this will NOT trigger the "Due on Sale" clause in the mortgage agreement.

First off is this accurate? Second and VERY IMPORTANT question is whether this transaction triggers state tranfer tax. Im sure its state is different buf any info would be helpful.

Lastly from research it seems that after the deed is recorded , i can privately name an LLC as a beneficiary which then provides liability protection.

Allot of stuff here so any insight or experience is helpful.

[Chris K.]

@Rick Ortiz

In Pennsylvania, there is a realty transfer tax exemption for certain trusts. BUT you want to make sure you do it correctly. It's an area of law where things can get complicated. There's a fairly recent case that went all the way to the Pennsylvania Supreme Court due to the wording in the trust. The person ended up having to pay a few thousand dollars in realty transfer taxes on top of all the legal fees. 

For the due on sale clause, you could fall under the Garn-St Germain Act as @Mike S. mentioned. But you just have to confirm that your property qualifies for it.

I suppose another question to ask why you want a land trust in the first place. Some people are really into the concept. I'm not one of those people. Just curious why you think you need it. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.