AboutDick Dennis Expertise With more than 37 years as a real estate broker, I can solve most any problem presented. If I can`t, I do my research. Problems with mortgages, trust deeds, foreclosures, odd ways of conveying titles. Most any good Realtor can answer questions satisfactorily, but I answer questions that most cannot. Also, ask about my hard-copy newsletter.
Experience Problem solving since 1980
Organizations National Association of Realtors
Publications Publishes The Landed Gentry, guest writer in Who's Who in Creative Real Estate, First Tuesday, Financial Freedom and many newspapers
Question What exactly does the term "Family Trust" refer to when purchasing a home? Are there any particular things a buyer should look for to protect themselves when buying a home through a Family Trust?
Answer The idea of a "Family Trust" is a maneuver by the owner (Family) to protect against probate more than anything else, Pamela. When John Smith bought the property, he had the property in his or his and his wife's name, John and Jane Smith. Since they are aged, they thought it would be a good idea to be able to transfer title to their two children at this time so that they would not have to draw up a will or if they choose, just let the property transfer over to their two children. But if they do that, the state steps in and conducts a probate and attorneys get into the picture with their fees and any fees the state may want.
However, by deeding the house over to the Smith Family Trust all that is not necessary. Upon their demise, the property is transfered over to the succeeding trustee, which happens to be their two children. The property is still in the name of Smith Family Trust and no recording of the title of the property is necessary. Willie and Cynthia Smith now are in charge of the property through ownership of the property via the Smith Family Trust.
When the property is sold, whoever is the trustee at the time of the sale, signs all necessary papers to convey title to the new owner. The Smith Family Trust folds (if there is no other assets in the trust) and the new owner takes over. To make sure you understand all this Pamela, I would suggest you sit down with an Estate Attorney to have it all explained.
The main idea of a Family Trust is to skip around a probate. Period. It does not affect the buyer whatsoever. I do wish you well.
