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Real Estate Tip – Should You Consider a Trust as an LLC Alternative?
Commercial landlords and tenants typically gravitate to the LLC as a preferred form of business organization. Another choice is a trust. State laws in Delaware, Illinois and Massachusetts, among many others, mean “putting a property in trust” can have myriad meanings:
- Commercial trusts allow the trustee to take and share in risks as both trustee and beneficiary
- Land trusts keep beneficiary identity confidential
- Statutory business trusts may transact business and be sued in their own name, not the trustee’s
Management choices differ depending on whether the trust statute refers to corporation law or trust law. State and federal trust taxation laws are complex but create many planning opportunities.
Ask your legal counsel and tax advisors about trusts and be prepared for a potentially fruitful discussion. An investment trust, remediation trust, special purpose trust or one of the trusts listed above may fit your situation perfectly.
Today’s real estate tip is brought to you by Rick Smith, a member of Bernstein Shur’s Real Estate Practice Group. Stay tuned for more useful tips for real estate professionals.
For more information on property trusts, contact Rick at rsmith@bernsteinshur.com or 603 623-8700 ext. 8829 or 207 774-1200.
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