Not sure which one is right for you? A family trust is a legal entity created as a means of passing family property to family members upon the death of the person or persons who created the trust. In some situations, co-owners of property may structure their ownership interests in a way that provides for the transfer of a deceased co-owner’s property interest. Probate Probate is trust ownership of real estate court-supervised process of transferring a deceased person’s property.
A family trust is often created to pass property to specified beneficiaries of the trust without the necessity of probate. Co-Ownership A common form of co-ownership is joint tenancy. Under a joint tenancy arrangement, the surviving joint tenant automatically inherits a deceased joint tenant’s property interest, thereby avoiding probate. Probate may be required, however, when the last surviving joint tenant dies, since there are no other joint tenants who can take the property. Tenancy in common is also a common form of co-ownership. If the family trust has two or more trustees, all trustees must usually agree to sell or transfer trust property.
Creation Although trusts are usually created by a written document, not all family trusts require a written document as a prerequisite to their creation. One exception to this rule is if the trust holds real estate, in which case a written document is required. Two or more persons may also own property together without a written document. As with a family trust, however, a written document is required to establish co-ownership of real estate. What Is the Law for When Land Is Jointly Owned and One of the Owners Dies? A joint tenancy is a form of property ownership in which two or more people own the assets together, including the right of survivorship. What Are the Elements of a Family Trust?
A family trust is perhaps the most common type of trust created today. As its name suggests, a family trust is designed primarily to pass property to family members upon the death of the person who created the trust. Changing a Family Trust Deed A family member may have placed his property into a family trust as part of his estate planning process. Do You Have to Partition Undivided Property in a Will? Partitioning is a judicial process that divides co-owned real estate among its owners. An offer of membership in our legal plan is not an endorsement or advertisement for any individual attorney. The legal plan is available in most states.
We are not a law firm or a substitute for an attorney or law firm. They provide exposure to real estate, without the hassle of direct ownership. REITs are structured as trusts for tax reasons, and as a result, they do not pay federal income taxes at the entity level. There are five factors I analyze at a REIT, before putting my money to work in the sector. Earnings per share are not an adequate way to look at REITs.