A closer look Building a Lasting Family Legacy: Holding Real Estate Investments in Trust

In Brief

• Holding real estate investments in trust can be a central part of a family legacy, providing income, appreciation, and portfolio diversification for current and future generations.
• Many trustees, perhaps misunderstanding the regulatory framework and the unique economics of holding these assets, are reluctant to include directly held investment real estate within a trust.
• For experienced trustees with the requisite knowledge and specialized skills, it is possible to hold real estate investments in trust successfully and without incurring excessive risk.