Pros and Cons of Setting up a Family Trust on Real Estate

What are the Advantages and Disadvantages of Setting up a Family Trust on Real Estate?

A family trust is a legal arrangement in which a trust is created to hold assets for the benefit of a group of people, typically family members. One common asset that is often placed in a family trust is real estate. Here are some advantages and disadvantages to consider when setting up a family trust on real estate:

Advantages:

  1. Asset protection: A family trust can provide protection for the assets placed in it, including real estate. This can be particularly useful if the property is at risk of being seized or sold to pay off debts or legal judgments.
  2. Tax benefits: A family trust may offer tax benefits, such as the ability to transfer ownership of the property without incurring capital gains tax.
  3. Control: A family trust allows the trust creator (the settlor) to retain control over how the assets in the trust are managed and used, even after they can no longer manage them themselves.

Disadvantages:

  1. Complexity: Setting up a family trust can be a complex process that requires the help of a lawyer or other legal professional.
  2. Costs: There are costs associated with setting up and maintaining a family trust, including legal fees and ongoing trust management costs.
  3. Limited control: While a family trust allows the settlor to retain some control over the assets in the trust, they also have to relinquish some control to the trustee, who is responsible for managing the trust and making decisions about how the assets are used.
  4. Limited flexibility: Once the trust is established, it can be difficult to change it. This can be a problem if the needs or circumstances of the beneficiaries change over time.

Overall, the decision to set up a family trust on real estate should be carefully considered and based on the settlor's specific needs and circumstances and intended beneficiaries. It may be helpful to seek the advice of a lawyer before making a decision.

Trust Attorney Free Consultation In Utah

If you need legal help, call this law firm and talk with our experienced attorneys about setting up a trust for a FREE consultation.

We help you with Estate Planning, Wills, Trusts, Power of Attorney, Health Care Directive, Estate Administration, Probate and More

Parklin Law - Estate Planning

5772 W 8030 S, # N206

West Jordan UT 84081

(801) 618-0699

Parklin Law
Estate Planning Attorney in West Jordan
https://parkin-law.business.site/

40.605070, -112.027530

Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.

Location: Cedar City, UT, USA

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