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Old 04-05-2021, 11:59 AM   #8
Descant
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Default Second opinion

I agree with MAXUM (#4). We established a Realty Trust in 1986. The original donors were the trustees, but 5 children and grandchildren were the shareholders. My great niece is now one of the shareholders/beneficiaries, so we are into the 4th generation.
The original intent was to keep the property in the hands of direct descendants, so an unknown third cousin in Alaska didn't intrude into ownership.
Over a thirty year period, (1986-2016) we created an endowment fund so there is no quibbling about who has to pay what percent of overhead. This is a NH trust, so it is exempt from NH Interest and Dividends tax. However the tax on capital gains in trusts can be heavy. This is where you need a CPA as much as an attorney.
In 2019, we tightened up the language so there would be no personal benefit to one beneficiary trying to force a sale, and the assets of the trust cannot be used as collateral by shareholders for personal commitments. As a realty trust we can also conduct other business, such as buying a condo boat slip to protect island access.
Summary: this is aimed at very long term goals, not just avoiding probate for one generation.
One financial advisor seminar recommended having a second attorney review the trust documents before you sign them. An hour or two fees, probably a good idea. I'd expect to pay for several hours fees to get original documents truly in line with your family needs. Emphasis on "family". The next generation should participate in the discussions. JM2CW.
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