Buying Trust Property In Los Angeles
While it’s perfectly feasible to buy trust property in the Los Angeles area, doing so requires a few extra legal hurdles to avoid complications and liabilities. West L.A. real estate broker Michael Millea can simplify the complications. Mike Millea has more than 20 years experience buying and selling real estate in South Bay, Torrance and all of Los Angeles. If you’re trying to buy property currently being held in a trust, whether its multifamily investment property or commercial buildings, you’ll need to have a detailed understanding of the key terms and concepts of trusts, as well as the process of buying property in trust.
Why Do People Use Trusts For Real Estate?
For many people and families, trusts present an attractive option for storing assets. Some people place assets – including real estate – into trusts for tax purposes. Other people put property in trust to ease the passing of an asset to an heir or beneficiary. Still, others create a trust to protect their intentions after passing away.
Types Of Real Estate Trusts
One of the key things that an expert real estate broker like Mike Millea can help you understand about buying trust property is that, depending on the type of trust, the controller of the property – the trustee – may or may not have the legal right to sell it.
- Revocable Trust. In a Revocable Trust, which gives the trustee(s) complete control over the assets in the trust and allows them the right to liquidate the assets at any time, the trustee does have the right to sell the property.
- Irrevocable Trust. In an Irrevocable Trust, however, trustees don’t have complete control over the assets. In fact, the assets of an Irrevocable Trust automatically belong to the Beneficiaries (those that will eventually receive the assets) – the trustees are simply fiduciaries with a binding obligation to protect the assets of the trust, and they must receive permission from the beneficiaries to liquidate the assets. If you’re buying property in an Irrevocable Trust, you’ll need to involve the beneficiaries as well as the trustees in the buying process.
The Process of Buying Trust Property In Los Angeles
Before making the purchase, you and your attorney will need to review a number of key documents to understand the nature of the trust. Before buying, you’ll have to review the following:
- Trust Document: This outlines the nature of the trust and will tell you and your attorney who has the right to sell the property.
- Title Report: This is a key document find out about any liens that might be on the property – if liens do exist, it can be difficult to take them off.
- Authorized Signer Statement: This is a great safety step to ensure you’re purchasing the property legally. This document confirms that the person who has the authority to sell the property – be that trustee or beneficiary – agrees to the sale.
Millea As Your 1031 Exchange Consultant
One of the many complications legal concepts that you will want your real estate broker to be experienced with is 1031 Exchange. This refers to a section of the IRC code that states that an investor is allowed to sell a property and then reinvest the proceeds in a new property and defer all capital gain taxes. This can be a powerful protection for real estate investment property buyers. You can count on your Los Angeles real estate broker Mike Millea to serve as your 1031 Exchange consultant, walking you through the entire process and representing your best interests.
Contact Your Los Angeles Trust Real Estate Agent Today!
When you’re ready to purchase property currently contained in a revocable or irrevocable trust, you are going to need a skilled professional to review all the documents, structure the deal, and execute the agreement. At Mike Millea Probate Real Estate, Mike and his team have years of experience helping buyers navigate trusts at every level of complexity. They can also help you purchase multi-family investment property or property in a conservatorship. When real estate buying in Los Angeles get complicated, call us today at (310) 939-9356 or reach out to us at our contact page to discuss your real estate buying needs and we’ll work to get you the best deal possible – no matter what piece of property you’re after.