Personal Residence Privacy Trust – ☕Coffee With Carl EP-35 (New Series)

Personal Residence Privacy Trust – ☕Coffee With Carl EP-35 (New Series)


(upbeat music) – Hello everyone, and
welcome to another episode of Coffee with Carl. I’m your host, Carl Zoellner,
one of the attorneys here with Anderson Business Advisors. Today, I want to take a
chance to discuss sort of a new tool we’re using called the personal residence privacy trust. The scenario goes something like this. We’ve set up an asset protection
structure, the client is, you know, protected within
their business investments, but maybe they have a high
value or a completely paid-off personal residence they don’t
want people to see they own. Now, I use this in almost
every single location I can, meaning I’m not differentiating
between homestead exemption states, whether
it’s full home, you know, 100% or unlimited homestead
exemption like in Texas or Florida or if it’s a low
homestead exemption state like California which
is $75,000 right now. I like to have those
available for any type of personal residence because
if we’re really looking at focusing on, say,
anonymity, this is sort of the last piece of that anonymity puzzle in that you don’t have to look attractive to your potential creditors. So normally, in a case where
you’d see this is somebody who says has rental properties. They find out who eventually the owner is, and then they start looking
around at the assets you own. This has actually happened to
a client who had an expensive personal residence in California, and then had a rental
property in Colorado, and ultimately the ability to
see how much their personal residence was worth actually
stalled the negotiation process saying if the plaintiff
was actually going to, say, take insurance limits
or a small settlement and actually fueled the
fire of the litigation and ended up costing the
person substantially more just because the plaintiff’s
attorney could see that that person’s personal
residence was worth quite a bit of money, and they knew, and
that led them to the assumption that they had quite a bit of
money and that they should go for more than policy limits. So the personal residence privacy trust is a cool tool we can use. I sort of look at it as the final step of making your asset
protection structure anonymous, meaning now I’ve taken everything
else anybody can see that I own, and now I’m even adding
in my personal residence, so now that they can’t see what I own. I’m still generally not
putting that personal residence into a, say, a business entity like an LLC because I think it’s kind of a stretch to say a personal asset
like that would make sense as a business asset or that
it should have separation in a business entity, but
this does let us strip our personal names from title on, say, a personal residence we own. The way we accomplish this,
and there’s several videos on sort of all these pieces,
but normally what we’ll do is we will put your personal
residence into a land trust. So now we’ve taken your individual
name and we’ve deeded it over to a land trust. The property I mean, those
in your individual name, and then on that land trust
we will use a nominee trustee, meaning a trustee that is
not you as an individual. Normally this will now be a
Wyoming LLC that is set up for the sole purpose
of being that trustee. So now we’re in, say, if you
looked at my personal residence it would show up as Carl
Zoellner, a single person, as owner of, you know, XYZ
property, it would now show up as 123 Main Street LLC as
trustee of 123 Main Street trust. So by taking my name off
of it, it makes it far less searchable for prying eyes,
specifically predatory plaintiff attorneys or
predatory plaintiffs, and now the rest of your
anonymity and your structure is completed because now
they cannot only not see any of your investments,
but now they can’t see your personal residence which
I think is an incredible value if we’re going the full anonymity route. So that is generally what
the personal residence privacy trust is. By the way, for those of
you in those unlimited homestead states, the personal
residence privacy trust does not violate those
homestead exemptions. So there usually is a
couple questions on that. If I put it in this trust will it mess with my homestead exemptions? No it will not, it’s just
another way to take your name off title, and with a
personal residence we want the ultimate ownership or,
say, the beneficial interest of this land trust to be
held by your living trust, and the problem where you run
into with the living trust is normally it’s, you know,
say if it was my living trust, it’d be the Zoellner Family Trust, so therefore not a whole lot of anonymity. So by adding this land trust
in the mix with nominee trustee you get that level of privacy protection and you can still have it,
your property, incorporated into your living trust
just as you had it before. So that’s it for me on this video. As always, take advantage
of all of our free education opportunities and we always
encourage you to come out to one of our three-day classes. If you’ve already been to
tax and asset protection, we also offer more
levels of classes as well as you become more
advanced in your knowledge and some different
strategies there as well. So until next time, this is Carl Zoellner, one of the attorneys with
Anderson Advisors signing off and we’ll catch you on
the next episode, thanks. (upbeat music)

2 thoughts on “Personal Residence Privacy Trust – ☕Coffee With Carl EP-35 (New Series)

  1. When you deed your primary residence into a land trust and get it off your name, does that help lower your DTI on your personal side with the banks? To be able to qualify for other loans?

  2. Fantastic idea. I have been using an LLC w the address as the name owned by Wyoming LLC. Property LLC has master lease agreement with Corp.

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