If you want to be one of those who were wise to disguise their names as owners to their real estate investment, you can consider doing it so with a real estate lawyer and under a real estate trust.
It’s certainly legal and there are certain advantages to it:
It necessarily helps you avoid double taxing especially when there’s a number of people showing the same interest on the property;
In a consolidated way, real estate trust records relationships and of multiple owners.
It also offers asset protection if a lawsuit is filed against you.
With real estate trust, it is easier to transfer your real estate property to your loved ones so you can avoid death taxes. It will also easily set the right time and the right way on how your will would be executed. In any properties listed under an individual name, this would warrant time consuming trips to the court. Real estate trusts will save you from that.
Here are the disadvantages:
It’s expensive, as in $3,000 expensive and more if the trust is too complex.
It is complex process.
It requires meticulous and specific definition of assets protected and retitled. For example, if you have placed your home in the trust, your other assets will be subjected for probation.
As you die, your estate will definitely be facing more expenses, as tax returns and value assets will have to be paid by the trust.
Consult your real estate planning lawyer if you have queries about real estate trust.
