Straw owner
Encyclopedia
A straw owner is a person who owns property
legally or has the legal appearance of owning something but does so on behalf of another, sometimes for a fee, and typically solely to hide the identity of the effective owner. Most instances of straw ownership are legal, but the arrangement is sometimes made for nefarious, illegal purposes.
In the realm of real estate
, a "straw owner" would be the person who holds title
to the property
, and for all legal purposes and outwardly the owner, but who acts on behalf of a hidden person who installed them as the legal owner. Though the practice itself is legal, widespread, and sometimes beneficial to the parties involved, it is sometimes used illegally to hide assets from the courts and creditors or used to purchase real estate for money laundering
or to hide illegal gains.
Property
Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation...
legally or has the legal appearance of owning something but does so on behalf of another, sometimes for a fee, and typically solely to hide the identity of the effective owner. Most instances of straw ownership are legal, but the arrangement is sometimes made for nefarious, illegal purposes.
In the realm of real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
, a "straw owner" would be the person who holds title
Title
A title is a prefix or suffix added to someone's name to signify either veneration, an official position or a professional or academic qualification. In some languages, titles may even be inserted between a first and last name...
to the property
Property
Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation...
, and for all legal purposes and outwardly the owner, but who acts on behalf of a hidden person who installed them as the legal owner. Though the practice itself is legal, widespread, and sometimes beneficial to the parties involved, it is sometimes used illegally to hide assets from the courts and creditors or used to purchase real estate for money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
or to hide illegal gains.
See also
- Off Shoring
- Tax evasionTax evasionTax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...
- Money launderingMoney launderingMoney laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...