Welcome or Register
Back to Table of Contents

Living Trusts

Estate planners often recommend Living Trusts as a viable option when contemplating the manner in which to hold title to real property. When a property is held in a Living Trust, title companies have particular requirements to facilitate the transaction. While not comprehensive, answers to many commonly asked questions are below. If you have questions that are not answered below, your title company representative may be able to assist you, however, one may wish to seek legal counsel.

Who are the parties to a Trust?

A Family Trust is a typical trust in which the Husband and Wife are the Trustees and their children are the Beneficiaries. Those who establish the trust and transfer their property into it are known as Trustors or Settlors. The settlors usually appoint themselves as Trustees and they are the primary beneficiaries during their lifetime. After their passing, their children and grandchildren usually become the primary beneficiaries if the trust is to survive, or the beneficiaries receive distributions directly from the trust if it is to close out.

What is a Living Trust?

Sometimes called an Inter-vivos Trust, the Living Trust is created during the lifetime of the Settlors (as opposed to being created by their Wills after death) and usually terminates after they die and the body of the Trust is distributed to their beneficiaries.

Can a Trust hold title to Real Property?

No, the Trustee holds the property on behalf of the Trust.

Is a Trust the best way to hold my property?

Only your attorney or accountant can answer that question. Some common reasons for holding property in a Trust are to minimize or postpone death taxes, to avoid a time consuming probate, and/or to shield property from attack by certain unsecured creditors.

What taxes can I avoid by putting my property in trust?

Married persons can usually exempt a significant part of their assets from taxation and may postpone taxes after the first of them to die passes. You should check with your attorney or accountant before taking any action.

Can I homestead property that is held in a Trust?

Yes, if the property otherwise qualifies.

Can a Trustee borrow money against the property?

A Trustee can take any action permitted by the terms of the Trust, and the typical Trust Agreement does give the Trustee the authority to borrow and encumber real property. However, not all lenders will lend on a property held in trust, so check with your lender first.

Can someone else hold title for me “in trust?”

Some people who do not wish their names to show as titleholders make private arrangements with a third party Trustee; however, such an arrangement may be illegal, and is always inadvisable because the Trustee of record is the only one who is empowered to convey, or borrow against, the property, and a Title Insurer cannot protect you from a Trustee who is not acting in accordance with your wishes despite the existence of a private agreement you have with the Trustee.

Back to Table of Contents

Quick Search


view all


Any

Any

No Min.

No Max.

What people are saying about George...

We have had a working relationship with George Kammerer for over two years. We first met him when he showed us a rental property. He was immediately warm and welcoming, and the experience was like we were being shown around by a friend. Over the next 2 years he continued to help us as we looked into transitioning from renters to homeowners. He was always quick to answer any questions we had, show us properties, and educate us on the next steps to take and refer us to reputable companies. He always went above and beyond for us even when he wasn't getting anything in return, and we are so thankful and grateful that he helped educate us and send us to the right people. We ultimately purchased the same rental property that he showed us 2 years ago, and we wouldn't have gotten there without his help, guidance, and expertise! George is friendly and knowledgeable without being pushy or condescending. He knows the area well and will go above and beyond to help you find what you are looking for. I would work with him again and 100% recommend using him for your home buying needs! Joel & Jessica Bowman
If you are moving locally or from out of state, do yourself the biggest favor ever and engage the services of George Kammerer. George's knowledge of the area is unsurpassed, and guided us to an area that we described we were interested in living and suited our specific needs. Since we were moving from out of state, the timing was critical that we could coordinate our time and George's to the maximum. He also is remarkably quick to respond to any email or text that you submit. He is the first realtor [we've used] that truly wants his clients to be happy! He asks questions that are relevant to finding the house that you expect to find within the price range that you specify....George does not "push" nor does he "fast talk" you into making a hasty decision. He is a very patient man and has a background that can assist you in answering questions you may have while reviewing a home. I believe my husband and I are "sort of picky" and we would rate George a 5+ in every area shown above. Ruth VonDreau
We worked with George in selling our home (which was a great experience), so having him help us buy our next home was a no-brainer. He was always available to us, and would hunt down information we felt important in the listings we were viewing. His expertise in the area, especially Chattanooga, was very helpful and allowed us to finally choose a home for our family. We would highly recommend his services. Ralph & Jennifer Hairsine
View All

‚Äč

The Chattanooga Commercial Team

 

Check Out this site for all your Chattanooga commercial property needs! The Chattanooga Commercial Team of Heather Bevil and Valerie Gallups bring true commercial real estate experience to bear when representing Buyers, Sellers, Landlords, and Tenants. Just click the logo to explore!

ABR - Accredited Buyer RepresentativeCRB - Certified Real Estate Brokerage Managere-PROEqual Housing OpportunityMLS membershipQSC - Quality Service CertifiedREALTOR® certification

Real Estate Websites by iHOUSEweb iconiHOUSEweb | Admin Menu