Things to consider before buying property in a trust

Posted by Techyscouts | Posted on 08/10/2023
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    • Buying a property in trust is a very different sort of investment. It comes with some major benefits over buying a home or property outright with no trust attached. At Michael Millea, a Los Angeles trust real estate broker, clients are able to invest in trust properties and change the legal details of the trust as needed. If this type of investment interests you, be sure to speak to Mike in his West LA trust real estate broker office.

    1. You Are Just a Trustee, Not a Full Owner

    Buying property in trust means that you are the trustee. You are holding property in a trust until the day you hand it off to an heir or you pass away. It’s not really yours because it does and will belong to someone else.

    2. You Do Get Some Tax Breaks

    On the flip side, you do get some tax breaks for not being the full owner of the property. This is especially true if you choose to buy a property with an irrevocable trust. There’s no inheritance tax and no major property taxes that you will be expected to pay.

    3. No Lengthy Probate and No Liquidation to Pay Creditors

    Buying property in trust shields the property from a lengthy probate process after you pass away. Additionally, the property is protected against court rulings for liquidation of assets and using the revenue from the property to pay creditors. Investors who are concerned with potential lawsuits against their assets choose to buy properties in trust to protect their investments.

    4. Lawsuits by Tenants Are Your Problem

    Another thing to consider is that, even though you are not the full owner of the property, you would be the one served with court papers in a lawsuit. Whomever you hold the property in trust for would not be involved. You are the property trustee and representative, which makes you the responsible party. If you don’t rent out the property, then this isn’t an issue.

    5. West LA Has a Lot of Properties in Trust for Sale

    Living and working in West LA puts you in the perfect position to buy properties in trust. An abundance of these properties become available on the market quite regularly. Financing for properties in trust creates some interesting and complicated opportunities, but it isn’t impossible. Consult with West LA Trust real estate broker Michael Millea to see what is currently available.

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