Alex What to know about family owned land trusts?
In dealing with properties that are or will be owned by extended families, land trusts should be prepared for several years of family planning and discussions. It is often not an easy task to arrive at a consensus of family members as to how to proceed. The issues that need to be addressed include: 1.
Who is the owner of the property in a trust?
From a pure legal standpoint, trust property is owned by the trustee. From a tax standpoint, if this is a revocable trust, the owner for tax purposes is the person who transferred assets into the trust.
How does an irrevocable trust keep a farm?
The trust remains owner of the land as long as it’s operated and preserved as a farm by a family member. Should Bob’s son or another member of the third generation decide not to operate the farm, the trust’s instructions allow the beneficiaries to sell the land to a conservancy to spare it from development.
Who are the trustees of a family trust?
Here’s what he had to add: In my world, a “family trust” normally refers to a joint tenancy revocable trust (think husband and wife) as grantors (settlors), trustees and beneficiaries (trustee and beneficiary during lifetimes). When just one individual is involved it’s normally called living trust, revocable trust, grantor trust, etc.
In dealing with properties that are or will be owned by extended families, land trusts should be prepared for several years of family planning and discussions. It is often not an easy task to arrive at a consensus of family members as to how to proceed. The issues that need to be addressed include: 1.
The trust remains owner of the land as long as it’s operated and preserved as a farm by a family member. Should Bob’s son or another member of the third generation decide not to operate the farm, the trust’s instructions allow the beneficiaries to sell the land to a conservancy to spare it from development.
Can a spouse take ownership of a property in a trust?
The person creating the trust, known as the grantor, names himself as the beneficiary. However, a DAPT, which is irrevocable and protects the assets in it from creditors, is not valid in every state, so check your state laws. Marital property is property that was earned, obtained, or received during the marriage.
Who are the beneficiaries of an irrevocable trust?
“Our assets are locked in place,” says Bob, who now rents the land from its owner – the irrevocable trust – and the farm’s income is divided among all the siblings, who are the beneficiaries of the trust. The trust remains owner of the land as long as it’s operated and preserved as a farm by a family member.