1. The Texas homestead law (for asset protection purposes, and not
state taxes) only applies to a home that you live in. Check the
statute. You have to live (or intend to live) on the property. If you
sell the house via a note, you have NO protection by way of the Texas
homestead statute. NONE.

2. It sounds like you are trying to describe a Texas Land Trust. Any
competent financial advisor should be able to answer these questions
for you.

3. You can never ensure that you get P&I payments, as notes (and other
investments) are inherently risky. You should get a valid and executed
promissory note. You should also properly file that note with the
correct agency. Again, a financial advisor can easily address these
questions.

4. Based on your questions (you are not even asking the right
questions), you have missed a number of issues. Trust me. Contact a
financial advisor immediately.



Gary Brolis
http://www.MechanicsofMoney.com
http://www.MechanicsofMoney.com/blog.php




TimDavis wrote:
- quote -

"TimDavis" <timdavis3030[at]yahoo.com> wrote:


- quote -

It seems to me that you are getting far too fancy. Why not just sell the house
outright and invest the money in Treasury bonds. The yield will be slightly
lower, but far more secure.

-- Doug

- quote -

of anything that gives a person the benefits of home ownership without
home ownership. So my sense is that the "homestead" is attached to
the home you will sell, not you. Just like appreciation, tax breaks,
etc. - it all stops when you sell.


- quote -

I know of nothing that does that. You can, through a mortgage
document, repossess the property if the borrower defaults. Get a real
estate lawyer to draft the mortgage document.

- quote -

I realize you are injecting humor here, but the fact is that OJ had
arranged for an (apparently) bullet-proof income AND a home. You
decided not to do the first part.


- quote -

Speaking on behalf of the Internet strangers, I don't think we need a
lawyer here. I think we need to begin making some tough real-world
decisions like what kind of job income we can produce indefinitely.

Good luck.

-HW "Skip" Weldon
Columbia, SC

TimDavis wrote:

- quote -


- quote -

Tim - go to IRS.gov, and get a copy of Pub 537 regarding installment sales.

The current law is that you may exclude $500K of gains on the sale of a
home (subject to restrictions that likely don't apply to you).
Whether you buy a replacement home no longer matters. The law changed
some time (5years?) ago, but many people still believe the carry over
deal still applies.

Others can comment on the 'protection' you have on the Homestead issue.
JOE

On Thu, 22 Jun 2006 12:38:21 -0500, TimDavis <timdavis3030[at]yahoo.com> wrote:
- quote -

This is a lawyer question, but my understanding is that your asset is
the buyer's obligation to pay, and it can be taken away from you.

- quote -

I believe that the answer is affirmative.

- quote -

You need a Texas attorney here, not a bunch of Internet strangers.

i

We live in Texas.

Our home is free & clear of all liens.

We are a married couple, and our ages are between 60 & 64.

Under Texas law (Texas homestead exemption) our home is
protected from just about anything, except back taxes.

We do not owe anything to anyone - not even credit cards.

We do not have a 401, an IRA - absolutely nothing in the way of
a formal retirement plan. We were both self employed, and NEVER
signed up for any retirement plan, etc. The sale of our homestead
was/is our retirement plan.

We plan to sell our home with 100% owner financing over many
years. The buyer will simply begin making monthly payments
of a large interest amount, and a tiny amount going to principal.
The monthly payments will continue after our deaths, and will
go to our children. The length of the loan term is far in excess of
our lifespan.

We understand that we will most likely have to pay taxes on the
interest, as it will most likely be considered ordinary income. We
are not sure if we will have to pay capital gains on the principal
part of each monthly payment. We are guessing that in that the
homestead will be under $1,000,000.00 - there will not be
any taxes whatsoever, but ... ?


So here is the questions:

1. We currently "have" a great deal of legal protection with a Texas
homestead. That is, it would be almost impossible for us to lose
the homestead to any civil legal action. So the question is:
Can the monthly P&I payments to us be attached in any way, by
any civil action? Assuming that we pay all our taxes on time - is
there any other thing to worry about. Do we lose our protection
when we sell on time, and not reinvest in another homestead of
comparable value? We "do not" plan to purchase another home -
we plan to rent a condo, or?

2. Can we transfer the homestead into a trust of some type, then let
the trust sell the homestead on time and the trust manages the
money - giving 100% of the monthly payments to us to live on,
then later to our kids?

3. What should we do to INSURE that we will get the monthly P&I
payments - subject to only the failure to pay our taxes?

LOL - We want an OJ Simpson type of retirement plan:-)

THANKS!!!
Tim Davis

Please feel free to email me at:
timdavis3030[at]yahoo.com