Benefits of Holding Property in a Real Estate Trust
Do you own residential or commercial income property? Or maybe you’re planning an acquisition or sale. If so, there are tremendous benefits for you when using a real estate trust. Most importantly, your ownership is private. It is the safest way of holding “title” ownership. A quick comparison of the benefits illustrate just how effective trusts can be!
Reduced Personal Liability
Real Estate Trust: Yes! This is an enormous benefit. Any property held in a real estate trust is legally isolated from your other assets. Therefore, you are not personally responsible for liabilities attached to the property. You and your other personal assets are shielded, as liability is contained within the real estate trust.
Personal liability is limited by the LLC organization. However, the LLC must remain in compliance with state law, secretary of state filings and fees. Any omissions can invalidate your LLC statutory protections.
Real Estate Trust: Yes! With title in different trusts, properties are isolated from you, and from each other.