Eminent Domain Abuse

Eminent Domain is the right of any government or quasi-government (i.e., state, county, local, federal, etc.) to force owners to sell their property (usually at rock bottom prices) to them so that private property can be taken for a public use. This didn't used to pose much of a threat to homeowners, but more and more it has become a tool of government used for almost any purpose, public or not. Why so many people seem to be more concerned with the definition of "public use" instead of Eminent Domain being a problem in and of itself, is beyond me. But from the time our government granted each state its own plot of land, the right of eminent domain has been reserved by every state, and the government as well.

NIP IT IN THE BUD

One legal method to prevent the abuse (or use) of eminent domain, is to nip it in the bud before it begins -- buy land that is already federally patented (i.e., mining claims, homesteads, etc.) without legal or eminent domain reservations! So long as federally patented lands (without eminent domain reservations) have been sold or assigned to you by a patentee, rather than being re-issued by the state -- the property is automatically within federal jurisdiction (meaning the state, county and other quasi-governments have no jurisdiction to use Eminent Domain), and if there were no previous Eminent Domain reservations on the patent, no government, not even federal has the jurisdiction (legal right) to take your home and/or land away for any use ... except perhaps by escheat (if there is no one to assign the property to when you die) or a lawsuit judgement (see below).

FOLLOW THE MONEY

When purchasing land, look to an area that is not commercial, where it could be many years before it does become commercial property, as commercial property is where the money is... follow the money folks. In most (but not all) cases, eminent domain is used within city limits and on commercial property.

LAWSUITS AND CREDITOR CLAIMS

When buying property, have the owner transfer property via Revocable Trust Deed, which becomes a non-revocable charitable trust agreement upon payment, by allowing the donation of an easement to a charitable organization. The Trust agreement could make you the Trustee and Beneficiary (so long as the property is not first owned by you), so you are not the legal owner, but have the same (or better) property rights as an owner would, the Trust (because it is a charitable one) can be perpetual/last forever (unlike any other Trust form), and your property can never be taken away to pay creditors or lawsuit judgements -- so long as you weren't in debt before the transfer. Placing assets in trust also effectively avoids probate, estate and gift tax. Many assets can be held in trust -- real estate, cars, money, life insurance, health insurance, stocks, bonds, notes, etc. Trusts seem to be one of the best forms of asset protection planning as of yet, but know that each trust is different and each state has different laws regarding trusts, so due diligence is absolutely necessary.

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