Best way to hold family property; trust or other entity?

**pmaxwell** · 11-30-2008, 08:21 AM

Our family has inherited property which everyone is in favor of maintaining for family use. With the first generation to inherit it management isn't a problem. However with each generation there are more names on the deed, more people to involve in decision making, etc. I am suggesting that it be placed in a trust, LLC or other enitity where there would be officers responsible for decision making. Any suggestions on the best way to do this?

**Greg** · 12-01-2008, 07:23 AM

Every state has their own specific rules on how they handle different types of ownership so any advice you get off of a forum should not be a decision maker.

Start by talking to a CPA about the tax consequences of the different types of ownership and then talk to a good estate lawyer for the legal ramifications.

What you do now will affect everyone down the line.

**dinorealty** · 12-11-2008, 05:15 AM

I agree with Greg.

Although you are using it for family purpsoe, I would suggest to use the property for business / rent / lease etc. so that the income can add up to the property apart from its asset value. This will be a bonus for the coming generations.