How to sell property held by family trust?
Selling property held by a family trust does not need to be complicated, but the correct steps do need to be followed. If you wish to sell property held by a family trust and want to ensure everything is done correctly, contact Jason Hendriks, by email at [email protected] or by phone: 09 836 0939.
Do you have to pay estate taxes on a family trust?
An irrevocable family trust avoids estate taxes by paying the gift taxes on property at the time of deposit into the trust. Gift taxes are usually lower than estate taxes. There are some limitations to a family trust.
What kind of assets can a trustee manage?
Once the trustee is designated by the trust, the trustee may act to manage the assets of the trust. That can include a house, bank account, stock portfolio, automobiles, and any other assets of an estate.
Can a trustee sell property without all beneficiaries?
For example, if the trustee is selling a property of the trust, such as a house or a business, the trustee will do well to advise beneficiaries of the price for which the asset is being sold and confirm in writing that the beneficiaries are comfortable with that price, so as to avoid being sued in the future for “selling it under market value.”
What happens to the assets of a family trust?
The couple divides their assets evenly in their names or the name of the revocable living trust. Do not leave the marital assets in joint accounts, as these assets pass outside the trust. If one spouse dies in 2018, the first $11.18 million would be funded into the family trust, or the B trust.
Who are the parties in a family trust?
At the core of a family trust, there are three parties: a grantor, a trustee and the beneficiaries. The grantor is the person who makes the trust and transfers their assets into it. The trustee is the person who manages the assets in the trust on behalf of the beneficiaries.
How are assets in a marital trust taxed?
The second exemption is then applied to the assets in the marital trust. If any assets exceed the exemption, those assets are taxed as part of the second spouse’s estate.
What are the tax implications of selling a trust?
Depending on the type of trust and other assets held in the trust, you might ask your tax adviser if there is a provision in the tax code that could aid you in the sale, if you have other gains from the sale of other trust assets. Ilyce Glink is the author of “100 Questions Every First-Time Home Buyer Should Ask” (4th Edition).