The Vocabulary of Trust

By
Services for Real Estate Pros with ES Group

The use of trusts in asset protection is quite popular but the distinctions between a revocable and irrevocable trust are important to understand. In an irrevocable trust, possession of the asset is transferred to an independent trustee; the original possessor is no longer tied to them. Thus, for 1031 exchange purposes the irrevocable trust has a separate tax identification number. Therefore, in compliance with the same taxpayer rule, a revocable trust can be used interchangeably with personal ownership but an irrevocable trust cannot.

For a table depicting the differences, click here.

 

Comments (1)

C. Lloyd McKenzie
Living Albuquerque - Albuquerque, NM
Living Albuquerque

James,

Just wanted to stop by and wish you a Happy Easter

Apr 23, 2011 06:15 PM