Trusts are useful financial tools, often used for the purpose of planning an estate. A trust is essentially a legal framework into which ownership of assets can be placed. These assets can include financial products like stocks and bonds, or it can include real physical property, like land, jewelry or vehicles.
Yahoo Finance’s article “What Is a Property Trust and Who Needs One?” says that there technically isn’t a specific type of trust known as a “property trust.”
Any trust can be filled with a variety of assets, including property and real estate.
Trusts are most often used by people who are planning their estates and want to make certain their financial legacy is carried out to their wishes.
Know that a trust doesn’t necessarily protect your assets from estate taxes. Therefore, if the estate is valued above the state and or federal threshold, the applicable taxes will be assessed, even if everything you own is in a trust.
Nonetheless, there are some good reasons to consider creating a trust for the purpose of storing property.
First, it makes it easier to make sure your wishes are followed after you die, since you appoint a trustee to manage the trust after you die. You can state exactly who should get various physical items. In addition, property trusts make it easier for your family after you’ve died. Property in a trust will allow such property to avoid probate. That means your family will spend less time dealing with the court and receive any inheritance more quickly.
However, not everyone needs a trust. Those with fewer assets might not. However, if you have very specific ideas as to what you want done with your assets or if you have a particularly large and complex estate, a trust may be a good idea. Sit down with an experienced estate planning attorney to discuss your trust needs.
A property trust isn’t technically a specific type of trust. All trusts can be such trusts, if they are used to house the ownership of property.
There are revocable trusts, which can be modified and terminated, along with irrevocable trusts, which are permanent.
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Reference: Yahoo Finance (Sep. 10, 2021) “What Is a Property Trust and Who Needs One?”