A trust is one of the most potent tools available to the real estate investor. But if you're like most people you only have a vague notion of what a trust is and how it is used. A trust is a legal entity whose sole purpose is to hold assets. Trusts can hold any type of asset, including real estate. A land trust is a trust designed for the purpose of holding real estate.
The trustee owes a fiduciary duty to the beneficiaries and must carry out their instructions. Trust Agreement. This outlines the terms of how the trust is to be managed and administered. It spells out the responsibilities of the beneficiaries and the trustee.
Privacy of Ownership
The owner of record of a property held in trust is the trust itself. The trust agreement, which lists you as the beneficiary, is not made a matter of public record. Therefore holding a property in trust allows you to control the property without creating any public record listing you as the owner or associating you with the property in any way. This is a great thing if you don't like lawsuits.
Ease of Transfer
Transferring a property held in trust is much easier than transferring a property that you own. Beneficial interest in a trust is considered to be personal property, not real property. Therefore you can assign your beneficial interest in a trust to another party without a formal closing. The event is treated by the law as a transfer of personal property, not real estate.
The trustee owes a fiduciary duty to the beneficiaries and must carry out their instructions. Trust Agreement. This outlines the terms of how the trust is to be managed and administered. It spells out the responsibilities of the beneficiaries and the trustee.
Privacy of Ownership
The owner of record of a property held in trust is the trust itself. The trust agreement, which lists you as the beneficiary, is not made a matter of public record. Therefore holding a property in trust allows you to control the property without creating any public record listing you as the owner or associating you with the property in any way. This is a great thing if you don't like lawsuits.
Ease of Transfer
Transferring a property held in trust is much easier than transferring a property that you own. Beneficial interest in a trust is considered to be personal property, not real property. Therefore you can assign your beneficial interest in a trust to another party without a formal closing. The event is treated by the law as a transfer of personal property, not real estate.
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