Using a trust to manage any investment property is a very intelligent and sophisticated tool for any investor. There are a number of reasons why you can use a trust for holding the title of each property. Using a separate trust for holding each property title will allow you maximum privacy and protection. Here are some of the benefits and reasons why you can consider this option.
• Privacy. In our information age, anyone with an internet connection can look up your ownership of your real estate. There is no reason why you want to allow others to know what you own. A trust agreement is not on the public record which makes it that much more difficult for anyone to find out what you own. There are just too many reasons why all of us want this to be the case.
• Litigation. There is not point suing anyone who does not the money to win. The more money or wealth that you have accumulated makes you more of a target. There are too many cases where someone is sued over the smallest of issues. We live in a world where being sued is a real possibility. The more that you can reduce the public knowledge of your wealth will reduce the possibility of this happening.
• Succession. The beneficiary of the land trust generally names one or more successors in the event of death. This can be very useful when providing for one’s children and grandchildren. The beneficiaries will have the right of control and the use of the property immediately after death. This can eliminate a number of other problems and time-related issues.
• Gifting. The gifting of all or a portion of the property held in the trust is easy facilitated by assigning a proportion or all of the interest in the trust to a family or other beneficiary. There is no need to deal with the complicated issues of changing title and deed.
• Multiple Owners. A trust can be very beneficial when transferring or holding the ownership of property with a number of owners. We can use the example of a property that is now owned by four children of the diseased. The sale of that property does not require the full participation of those four children. The trust is the mechanism for the sale and acting party of any transaction. The dividends of that sale can then be divided among those children at a later date.
Using a trust is one of the many ways you can manage your wealth and protect your assets into the future. This article only highlights some of the benefits of using such a mechanism to protect yourself and protect your future intentions. Having sound property investment advice by those who understand your situation, your goals and your needs is essential in our complicated world.