Legal Question in Real Estate Law in Minnesota
land trust formation
how does one go about forming a land trust in the state of
minnesota? Have been looking for forms or advice, and cannot
seem to find any. Would like to transfer investment properties to
the trust. Not worried about due on sale clause as my
understanding is that trusts do not convey ownership to another
entity. Will cross that bridge when i get there. Is there another legal
name for the entity that i can do a search on?
Thanks.
1 Answer from Attorneys
Re: land trust formation
A trust is a trust. In my experience they are usually not categorized by what kind of property they own. They tend to be categorized by other qualities, such as whether they are revocable, whether they are testamentary and what kind of tax implications do they have.
I keep running into people who are looking to use a trust for purposes which could better be accomplished some other way. Why not a corporation or a LLC for example. You should get a lawyer and quit trying to do this by yourself. You are playing with fire here.
And a transfer to a trust is a transfer. It probably would trigger the due on sale clause. I can't see any reason why it wouldn't.
I've seen this sort of thing before and I must tell you: I have a strong feeling that you are in the process of getting yourself in trouble.
Good luck.
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