haha, first of all, please don't call me master...call me a bro.

haha, first of all, please don't call me master...

I have never done a real estate trust before, but from what I understand, it is a corporate entity, you can setup as a corporation, trust or a partnership.
do you need to file a 1041 each year?

to your questions..

- if the trustee change the name of beneficiaries or adjust the percentage of each beneficiary holds, from what I understand the changes will not be public record. Will there be tax impact? Will the IRS consider it is a sale or transfer of property?

---yes, it is true, changing the name or percentage of the beneficiary does not impact the trust itself.


- if something wrong happens on the house and somebody (for example, tenants) sues, who is got sued? Is the trust holding the house, the trustee or beneficiaries?

--- if tenant file a lawsuit, the trust will be sued, but since trust does not offer any liability protection, the owner of the trust will also be liable, in most cases, trustees are the owner, beneficaries are not.


- if one of beneficiaries get sued in other cases and lose, will his benefit in this trust get impacted? Will the whole trust get impacted

---- if a beneficiary got sued and lost, the court can demand his share of profit sharing be garnished, but not the trust, since he is not an owner...

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• Thanks a lot. -mominma- ♀ (0 bytes) () 11/01/2010 postreply 17:33:44