Expert: Karyn Foley - 9/30/2007

Question
Hello,

I read about experience and it seems you may be able to know the answer to this question.

My husband and I will be purchasing a house soon and we'd like to purchase it (no mortgage) through a Declaration of Nominee Trust with my mother as Trustee. Our main goal is privacy (versus probate avoidance). Her name as Trustee will show up in public records and not ours which is what want.

However, one small problem. My mother lives in Scotland and the title company said it could be a hassle for signing purposes. What would be the best way to have my mother (Trustee) authorize anyone else to sign for her on the house purchase papers/deeed?

I think I already know of some option but I don't know which would be simplest:

1. Add clause to Nominee Trust Agreement that a substitute trustee can be selected by beneficiaries (husband/me) when we are in the U.S.?
2. Have mother sign a Durable Power of Attorney?
3. Have a Managing trustee designation form or trustee appointment form?

I suppose I just want your opinion as to how you would handle it and what would be the easiest for us when it comes time to sign the house purchase/closing documents?

Thank you for your assistance.
Maria

Answer
Sorry, but this is not a subjection in which I have any experience and knowledge.  However, I would suggest that you contact an attorney who specializes in this in order to find out important issues that may supersede your desire for privacy. One, is who pays and loan and if the person who pays is the one and only one able to transfer the property later one.  Also, have this method of ownership can affect your interest in the property.  An accountant as well can let you know who is able to take tax advantages of home ownership and who pays the local and state taxes on the home.  Your Mother should also seek advice as to what is her obligations and accountabilities with her as Trustee.  It may be the best thing for you, or the worst; the same applies to your Mother.  The lawyer and or the accountant will tell you how best your Mother can get her signature approved; it may well involve our country's or Scotland's embassy.  If it proves to be in everyone's best interest, then adjust your seller's time table of expectations and write your offer accordingly.  No one minds a longer time period if it is explained and accounted for up front.  There are many ways in order to avoid probate; if probate is your biggest concerns there are easier methods and ways to hold title that avoids a probate scenario in the future.  Privacy is an issue that only seems to involve the entertainment and sports figures in my area.  If you have a serious issue regarding privacy, perhaps the attorney could also suggest an easier way.  Good luck, and I wish I could help you further, but since there are questions that need to be answered for everyone involved, I suggested the specialists who could explain and go into depth, rather than a real estate salesperson since the latter rarely does anything along those lines.  Good luck, Karyn Foley