Private Trusts For Real Estate Investing

THE PRIVATE TRUST AS A REAL ESTATE ENTITY

In this business scenario, there is a Private Trust Doing Business As a Real Estate Entity. When buying real estate the Private Trust creates a separate trust for each purchased property.

HOW TO TRANSFER REAL ESTATE INTO A PRIVATE TRUST A seller may choose to transfer real property into a trust. For trustees, funding a trust with real estate involves transferring the property’s title, drafting a new deed and getting it signed, and assuming responsibility for the property.

THE SELLER TRANSFERS THE PROPERTY’S TITLE In this contractual relationship, the seller is also considered as the grantor or creator of the trust transaction. The seller/grantor transfers title in the property either directly to the trust to an entity that acts as owner of the property on behalf of the trustee.

By executing a new deed to the property and filing it with the appropriate government office, the seller/grantor usually completes the transfer. The new deed usually goes to the local Registry of Deeds or its equivalent.

THE GRANTOR SIGNS THE NEW DEED The grantor signs the new deed in the presence of a notary public, who affixes his or her official seal. The original deed that you copied from will show how many witnesses your state requires. Record the new deed with the Registry of Deeds or the land court to complete the transfer.

YOU ASSUME ALL RESPONSIBILITY FOR THE PROPERTY After the trust officially becomes the owner of the real estate, you, the trustee, assume all the responsibilities for that property.

A Private Trust offers numerous advantages: Avoiding Lawsuits Keeping your Identity Private Purchase and Sale Prices Secret Easy Transfer of Ownership Avoid Probate Court Reduced Acquisition and Selling Cost Reduce Point of sale Property Tax Increase Avoid seller Seasoning Requirements

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