Using Real Estate Trusts to hide assets from Debt Collection Agencies

Some people will use real estate trusts to hide real estate from debt collection efforts by naming himself/herself, a close friend, a spouse or a family member as the trustee. The debtor is trusting that the named trustee will return the money at a later date. When this trustee obtains mortgage loans for the property through the trust, it becomes almost impossible to pin the property on the person in question through a records search. Some states allow for all assets to be placed in a real estate trust and for someone else to be named as trustee. In these cases, the real estate trust is ideal in hiding assets because the trustee is not cross-referenced with the debtor. Other states require that anyone with beneficial interests is named. Many states require a lot of paperwork that makes real estate trusts a much worse method of choice for hiding assets. In about half of the local jurisdictions, this paperwork cross-references the trustees and the trust’s name making the search must easier to revealing concealed assets. we can look at the court’s information on mortgage loans, deeds, and trusts to start your search.

When dealing with a debtor that is sophisticated enough to bury and hide assets beyond the reach of the court systems when using vehicles like trust funds, it is imperative that you have either a very seasoned debt collection agency, like Commercial-Receivers, by your side.  Or escalate the collection matter to an attorney that specializes in debt collections.  These are called Creditors Rights Attorneys, as they represent the interests of the creditor.

 

 

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.

Share This