When purchasing property in a trust, you are holding the property for your own benefit as well as the benefit of your named successor and beneficiaries. Some remarkable benefits of a trust is the privacy aspect as well as the legal protection that you retain. The name on the title of the property is the trustee. Trustees are a third party that manage the property. What this means is your name will be seen absolutely nowhere. Another benefit is the ability to avoid judgement and liens against any beneficiaries who are associated with the trust. The beneficiaries may be affected, but not the trust.
And now the bads news: Trusts are taxed fairly high. Usually, the average tax rate is 40%. Sometimes it is better to just buy the property as an individual instead of utilizing a trust to avoid the tax bills. Also, when the property is in a trust, the trustee has the power to administer and control the property, not the founder of the trust. Sometimes a trust can have several trustees and issues do arise when the parties involved don’t see eye to eye on how the property should be managed.
At the end of the day, you would want to contact The Rozhik Law Firm in order to examine all of your available options and decide what is the best approach on buying property. Whether you are looking to establish a trust, or buy the property as an individual, we have the expertise to guide you towards the most profitable route.