Disclaimer: We are not attorneys. We are not responsible for any consequences. Please consult an attorney before you make any final decisions.

 

Do you know that your house information is public records? That means anyone can have access to your home information such as home size, home price, purchase date etc. If you are thinking about hiding your homeownership, buying your home in the name of a trust may be an option.

 

Trust is like a fake ID that you use to hold the asset (e.g., your house). You can appoint anybody, usually someone you trust, to manage the house for you. If you don't want to bother that person, here is the good news. That person can hire you to do all the work. 

 

Therefore, there are four parties involved in trust:

1. Trust: it is an entity (like an organization) whose name will appear on your deed, instead of your name. The name of the trust is created by you, just like a fake ID.

2. Trustor: the person who creates the trust. Often times, it is you and/or your wife.

3. Trustee: the person that you appoint to manage the trust for you. This person's name will be shown in the public records. Again, this person can hire you to do his/her work.

4. Beneficiaries: the people who receive the interests of the house (such as house equity and rental income). Usually, beneficiaries are you, your wife, and your heirs. 

 

There are some disadvantages in using the trust as well. Here are some examples:

1. It is more complicated in terms of paperwork. The trust needs a separate bank account. Any payments (such as property tax and insurance) and profits (such as rental income) will have to go to the trust bank account.

2. Some banks do not allow closing with a trust. Some do. Some allow you to close with your name and then transfer your property to the trust. So consult your lender first!

3. Finding the right trustee can be a challenge. The trustee has the power to sell the house without your consent. So it has to be someone you really trust.

 

For more information, please consult your own attorneys.

 

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I personally consulted an attorney on the subject matter. Here is her contact information:

 

Christina M. Scola

Cameron & Mittleman LLP

Attorneys-at-Law

Email: cscola@cm-law.com

Phone: 401-331-5700

Address: 301 Promenade Street, Providence, Rhode Island 02908

 

Disclaimer: we have no connections with the above attorney. We are not responsible for any of the consequences you derive from working with the above attorney. Feel free to find your own preferred attorneys.