Advanced Trust Services
TrustArte offers many advanced trust services that serve unique individual needs for privacy, business management and personal finance. When you have a question about any of these services, you can contact us by phone or email to schedule a personal consultation.
Divide Marital Property – married couples divide joint assets for safety. Each independently owns 50% of the total while naming the other spouse is successor beneficiary. Why expose 100% of assets at risk?
Pre-Nuptial Alternative – rather than a prenuptial contract (always subject to legal challenge) use a trust to legally isolate assets in advance. Why spoil marital bliss with business?
Trust & LLC – for additional protection LLC is the beneficiary of your Trust. Organize in any state you wish. Use a low cost state for registration. If just holding, no need to register as foreign entity.
Trust & Inc – for additional privacy the corporation is your trustee. Incorporate in any state you wish. If corporation is nominee only for holding title, greater privacy and reduced filings.
Grantor and Non-Grantor Strategy – use a C corporation as Trustee to create non-grantor adversarial relationship. Works best with married couples due to unlimited tax free gifting.
Change & Challenge Legal Situs – the real estate’s trustee is located in one jurisdiction. The beneficiary’s intangible personal property rights are in another.
Create Debt to Protect Equity – use a trust to create debt and reduce equity. There are several valid reasons this works such as gifting.
Protect Heirs – typically heirs receive property in their personal name. Is there a safer way? Establish a trust for your heir in advance of the gift. It provides preplanning advantage and depending upon how setup, protects inherited assets from creditors and other personal hazards.
Reduce Landlord Liability – instead of contributing property to the trust, sell it to the corporate trustee. Use a shared appreciation note (debt) to safely encumber the property.
Joint Venture Safety – partners are often individuals, corps or llcs. Use real estate trusts to hold property as tenants in common. Each trust would have its own beneficiaries and estate planning features.
Master Leasing Strategies – property managers as agents create vicarious liability for their owners. Have your trustee sublease to subtenant for greater safety. Tax benefits too.
Stacked Trusts – a portfolio of rentals are held in multiple real estate trusts yet all have a common beneficiary, a holding trust. Underlying owner becomes invisible to the public, and only reports net rental income on personal tax return.
Create Bearer Corporate Stock – rather than registered in your own name, use a holding trust to quietly protect your ownership. Easily transfer shares without re-registration.
Create Bearer LLC Shares – rather than registered in your own name, use a holding trust to quietly protect your ownership. Easily transfer shares without re-registration.
Divide Title by Time with Estates – If you held an estate for years, or life estate, any court judgment would extinguish automatically at the end of that period without recording a deed.
Combinations – a real estate trust in one state, a corporate trustee from another state, an LLC as beneficiary from a third state. Corporation is LLC manager, other member is holding trust.
Avoid 1099 at Closing – a corporation is your real estate trustee. Direct sale proceeds into a holding trust bank account with the same corporate trustee.
Create Diversity of Jurisdiction – Form a real estate trust in high tax state under the laws of another while using a foreign corporation as trustee to establish domicile of the trust.
Multiple Taxpayers – by dividing up income, you can reduce overall tax burden. Rather than single return with all listed, various trusts spread risk and reduce visibility.
Avoid EPA Liability – a real estate trust to avoid personal liability. Use equity as debt to control the property.
Step up Basis Foreclosure – rental owned and sold by trust on contract later defaults. Rather than repossess, sell it to another trust. Three party transaction.
Avoid Deed in Lieu – defaulted buyer offers lender deed in lieu. It would dangerously extinguish the debt then all other liens move up in position. Real estate trust buys defaulted note and preserves lender position in priority.
Step up Basis Joint Venture – each investor with their own trust insulates each other, as well as the property. If anyone dies, their share inherited by the remaining parties.
Low Profile Transfers – a grant deed recording is subject to reporting and transfer taxes. Sell/buy the beneficial interest. Stagger events using time differential.
Avoid Intangible Tax – out of state trustee forms holding and real estate trusts. Holding trust beneficiary is corporate nominee.
Avoid Gross Receipts Tax in CA – rather than LLC, use Business Trust. Use your LLC as beneficiary.
No Foreclosure, Repossess – if you use the trust vehicle to sell a property, and the buyer defaults, no foreclosure. They become tenant at sufferance. You evict & repossess beneficial rights.
- Trusts hold title to assets in private
- Corporations are for cash, pensions, tax benefits
- LLCs provide statutory protection from liability
We use each in a single manner, or structure combinations to create unique benefits.