Hello All:
I am interested in hearing your opinions on buying real estate in trusts.  For example, what are the pros and cons of buying in trust for a corporation, for example.  I understand that there are more disadvantages associated with buying in a corporation but less if it is in trust for a corporation.  If so, who sets up a trust and how worthwhile is it to do this?

Thank you.

Trust have an expiry date in Canada, after 20 years. It is also harder to get a mortgage, and you will have to personally guarantee it, negating the benefit of limited liability of a trust. It will also cost annual accounting and filing fees, thus it makes sense only for larger assets (say $1M plus). A capable lawyer can set it up. Main benefit is the change of beneficiaries, i.e. separation of beneficial and legal ownership.

Hello Thomas:

Thank you very much for this information.  Why do people buy properties in trusts if the liability is still existing?  Are there major advantages?

 

Buying in a trust is not common in Canada. Reread my post as I listed the major advantage, namely the ability to change beneficiaries. It may also be beneficial for a minor, say on inheritance !

Thomas:

Thank you very much once again.