Can you have someone buy for you at auction with your cashiers checks if you issue the person you send specific power of attorney?
I think it is easier than that. I watched a regular buyer give the vesting information to the auctioneer and it was not for him. I think you can vest the property anyway you want to. If you know the exact property, I think you can give your bidder the check payable to the trustee. If you don’t know the exact property, then you would put the checks in the name of your bidder and hope he doesn’t leave the state. I don’t think the POA will work.
could you vest using a trust?? do trustees?allow bidders?that want to vest title in the name of a trust???
You can vest the property however you want. ? As for checks, two basic approaches. If you trust the person you are sending have the checks made out in their name, then they can sign them over to whatever trustee happened to represent the property they purchase. You may also be able to get employee dishonesty insurance to cover you if they run off with the checks. ? Second alternative is to give them checks made out to the trustee of the property you want to purchase. Keeps them from cashing them for themselves, but is a real pain unless you are only looking at one property.
I am getting set up to bid at the auction and my backers are looking for protection when handing over the cashier’s checks required.
To provide them some security I was thinking about forming a trust with the backer(s) as the beneficiary and me as the trustee. Then getting a bank account and the checks cut in the trusts name and just signing them over to the trustee at the auction with my authority as the trustee of my trust. I asked the regular trustees at the auction and they said they would accept the checks.
What is your opinion on this structure?
Also in an effort to minimize taxes what would be the best corporate or trust structure to facilitate this?
The key is to make sure it will be ok with the trustee. I’ve also heard of folks using a limited power of attorney. Have not tried either myself.
Someone won a property at auction for my corporation. However their power of attorney had expired, oops. Auctioneer didnt notice but I have not received the deed yet. Do you think Trustee will have a problem with an expired POA? Help!
Hi JB, My guess is that they will not notice. I also sincerely doubt they want to rescind the sale and start over.
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