Trusted Ways to Maintain Privacy
The United States is a uniquely litigious society. Most individuals cannot afford to pay the hefty attorney’s fees associated with litigation. To make it more affordable, many attorneys only get paid from a percentage of what they win for their clients. So, before even filing a lawsuit, savvy attorneys will conduct an asset search to see if a potential defendant is worth taking to court.
In today’s increasingly connected world finding out where someone lives or what they own has never been easier. Technology continues to narrow the scope of privacy we all enjoy. Privacy Trusts (or Land Trusts) is one way to reclaim our privacy and make it much more difficult for anyone, including attorneys, to discover where we live and what we own.
A Privacy Trust (or Land Trust) allows you to name a trustee to act as a titleholder in the public record while allowing you, the trust creator and beneficiary, to privately retain all the rights to the trust assets. Typically, these trusts are used in two ways – to hold title to real estate and to act as the business manager or owner in the public record.
Real Estate
When holding title to real estate, many people refer to these types of trusts as Land Trusts. By holding title in a Land Trust, the names of the settlor and/or any other beneficiaries are not disclosed in the public records. This is why many high-profile celebrities and politicians have been using Land Trusts for decades – to keep stalkers and paparazzi away from their homes and investment properties. But, equally valid for all, the need for privacy in today’s litigious-crazy society is strong. Many “regular” homebuyers and small investors are now electing to achieve some level of privacy by maintaining their holdings in Land Trusts, just so the general public cannot easily discern their financial strength. And, with identity theft on the rise, this need for generalized financial privacy is even more compelling today.
Businesses
Though this type of trust has historically been used to hold real property, more recently, Privacy Trusts have been used to hold companies, to give privacy to the company owners. The Privacy Trust uses a “title trustee” who signs on behalf of the LLC, rather than any of the active members. This allows the business owner to avoid having their name in the public record as an LLC member or manager.
Tresp, Day & Associates has decades of experience in protecting peoples assets to maintain anonymity and privacy. We are here and ready to help your unique situation.