LEGAL TITLE 
Saturday, January 25, 2014, 10:42 PM
Posted by Administrator
Sometimes, people buy a house or a car or a cow and put it in someone else's name. There are legitimate reasons to do this:
-The real buyer can't get credit in their name.
-The real buyer is out of the country or otherwise unavailable to sign papers.
Okay, I can't think of any other legitimate reasons but, I'm sure there are some.

Illegitimate reasons to put your property in someone else's name include:
-So you don't have to tell the bankruptcy court about the property (except that, really, it's your property....regardless of whose name it's in and not disclosing in a sworn document is perjury).
-So your wife won't get 1/2 in a divorce (except that she probably knows exactly what you've got....no matter how hard you try to keep it from her...and, again, that whole perjury thing.)
-So your creditors can't take the property after they sue you and get a judgment (except that whole perjury thing rears it's ugly head when you are required to disclose what you've got, under oath).

Because, whether the property is in someone else's name for good reason or bad, if it is your property, it's your property. You are the "equitable owner" of whatever it is you really own. The person whose name the property is in holds the property "in trust" for you. If the legal owner (the one whose name is on the paperwork) sells the property or if one of their creditors seize it, it might be tough-luck-on-you. But, between the equitable owner and the legal title holder, the equitable owner always wins...

Or, at least, wins if they can prove the property is theirs. Your sister will probably agree the house is really your house---you just used her better credit to buy it. But, will your son-the-drug-dealer admit the car you asked him to buy for you is your car?
"My mother gave me $5,000 to buy the car for myself.", he'll testify.....if you are inclined to sue your own flesh and blood.

So, the equitable owner always wins......if they can prove their case.
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