Get Help with Setting Up a Realty Trust in Pennsylvania

Realty trusts can allow you to pass your real estate onto your beneficiaries in a relatively simple manner. These trusts bypass probate, and the owners of the property remain anonymous.

One of the key aspects of estate planning is deciding what will happen with your real estate. You’ll want to talk to your estate planning attorney about the possibility of setting up a realty trust. This vehicle can facilitate a smooth transfer of property to a beneficiary while allowing for privacy. At the Miller Law Firm, we can help you to weigh the pros and cons of a real estate family trust and set it up if it's right for your needs.

What Is a Realty Trust? The Basics You Need to Know

A realty trust is a way to hold real estate. The property is transferred from the titleholder to the trust and the trust becomes the holder of the real estate. Unlike other trusts, the trustees of a realty trust can’t act without the express authority of the beneficiaries. It’s also important to note that this vehicle won’t protect beneficiaries from creditors or taxes. 

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Realty Trust Benefits

There are a number of reasons why you may want to establish this type of trust. They include:

  • Anonymity. When you set up a real estate trust, the real owners are anonymous. While the trust needs to be recorded with the Registry of Deeds, the names of the beneficiaries don’t need to be listed on the instrument. They’re recorded separately on a Schedule of Beneficial Interests which remains confidential.
  • Probate avoidance. The trustee, rather than the original owner of the property, holds legal title. Therefore, the property isn’t subject to a time-consuming and costly probate process.
  • Liability protection. By placing your real estate in a realty trust, you can’t be held personally liable by anyone with a claim against the property. However, this is only the case if the trustee is not listed as a beneficiary.
  • Ease for multiple beneficiaries in separate locations. If more than one person owns the property and they are based in different areas, the trustee can be authorized to sign documents without having to get signatures from each beneficiary.

What Is a Nominee Trust?

Realty trusts are also known as nominee trusts. These two terms mean exactly the same thing. 

Request a Consultation with a Real Estate Attorney

Now that you know more about setting up a trust for real estate property, you may want to find out if a realty trust is right for you. The Miller Law Firm is here to advise you.

The firm has offices in King of Prussia, PA, Lebanon, PA, and Framingham, MA. From these offices, we provide estate planning services to clients in:

  • King of Prussia, PA 
  • Lebanon, PA 
  • Lancaster, PA 
  • Reading, PA 
  • Wayne, PA 
  • Phoenixville, PA 
  • Plymouth Meeting, PA 

Contact us today to set up a consultation with an experienced attorney.

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