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psydoc
retired psychologist/real estate developer/builder
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Percentage of benificial interest
Monday, January 02 2012 01:16 PM
Hi Randy,
While preparing a LT agreement, an attorney (newly passed the bar) told me that it was a good idea to make the percentage of beneficial interest in a trust 100% for each of the two married beneficiaries. This is a LT that is being created to move a home owned by a husband and wife who have owned it for 20 years into the LT.
I think the beneficial interest should be 50% each, and that she is confusing "tenancy by the entirety" with beneficial interest under a trust agreement. The "Rights of Succession" is the proper means of transferring beneficial interest upon death or incapacity.
Any thought/direction you can offer is greatly appreciated.
btw, I think this proves your point that even attorneys who have recently taken a law school course in "Trust Law" need your course.
Thanks,
Doc
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Randy Hughes
Land Trust Expert-40+ years of experience
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Re:Percentage of benificial interest
Monday, January 02 2012 01:36 PM
Doc,
SEE MY COMMENTS BELOW IN BOLD.
While preparing a LT agreement, an attorney (newly passed the bar) told me that it was a good idea to make the percentage of beneficial interest in a trust 100% for each of the two married beneficiaries. This is a LT that is being created to move a home owned by a husband and wife who have owned it for 20 years into the LT.
I think the beneficial interest should be 50% each, and that she is confusing "tenancy by the entirety" with beneficial interest under a trust agreement. The "Rights of Succession" is the proper means of transferring beneficial interest upon death or incapacity.YOU ARE CORRECT. IT SHOULD BE 50% & 50% WITH EACH LISTING THE OTHER AS SUCCESSOR BENEFICIARY TO THEIR INTEREST. OR YOU COULD STATE BOTH THEIR NAMES AS 100% AS JOINT OWNERS WITH THE RIGHT OF SURVIVORSHIP.
Any thought/direction you can offer is greatly appreciated.
btw, I think this proves your point that even attorneys who have recently taken a law school course in "Trust Law" need your course.
I AGREE, TELL HIM TO GO TO MY WEBSITE AND DOWNLOAD A COPY :)
Randy Hughes
866-696-7347
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psydoc
retired psychologist/real estate developer/builder
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Re:Re:Percentage of benificial interest
Monday, January 02 2012 03:47 PM
I am way ahead of you, Randy. LOL. I gave her your URL and told her it would be one of the best investments she could make in her career if she was going to develop an asset related practice. Even if she doesn't specialize in that area, she will know more than most attorneys when it comes to LTs.
Thanks for confirming my thoughts, Randy.
Regards,
Doc
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