Post Tagged with: "Property"

Trusts for Minors: Leaving Money and Property to Your Kids

a lawyer consulting a familyMinor’s trusts, trusts for minors, or trusts for children are particular kinds of trusts used for holding and distributing assets to minor kids. These typically dictate the property and money assets that would be held in a trust until the beneficiary is 18 or 21 years old. The settler, the one establishing the trust, might put conditions that should be satisfied for the beneficiary to claim assets in the trust. For instance, the beneficiary could only receive the assets once he or she graduates from college or marries.

Requirements for a Valid Trust for Minors

For a minor’s trust to be considered valid, it should meet basic qualifying requirements for trusts, according to a probate attorney in Denver.

  • The only beneficiary stated in the trust is the minor.
  • All original assets, as well as income generated by the trust, should be transferred to the beneficiary once they’re of the age of majority, which is 18 or 21 years old, depending on state law.
  • The beneficiary is allowed to distribute the assets held in trust if he or she passes away before reaching the age of majority. For example, he or she could state how assets in the trust could be distributed whether in a valid will or another valid, legal document.

Advantages of Setting Up a Trust for Minors

The most important benefit of leaving assets in a trust for your child is the tax exemptions. In general, parents are allowed to gift their children money without tax consequences, but only up to a set amount. This is called the gift tax exemption.

But for you to qualify for this tax exemption, your child should have immediate access and control over your money gift. This means that standard trusts don’t qualify for the gift tax exception because the beneficiaries don’t have immediate access and control over them.

Establishing a minor’s trust for your child is a complicated matter since you need to take into account various considerations because the trust won’t be claimed for many years to come. That said, consult a local attorney for help in drafting a trust for your child to ensure that it’s valid.

September 17, 2018 at 7:11 amMind of Money

Here’s How You Can Ensure a Successful 1031 Property Exchange

Couple looking for home propertyIt might seem strange, but the government is your ally when investing in the commercial real estate. The state applauds your effort to house the masses, and provide office spaces for workers and manufacturers. To this end, the Internal Revenue Service or IRS makes concessions in the tax code to help you grow your investment in the sector.

Under Section 1031, you can defer paying taxes on capital gains if you reinvest the proceeds from a sale back into the commercial real estate sector. For a successful 1031 exchange in Idaho, you need to take a few precautions, notes 1031 Exchange Place.

Hunt for a Replacement Property Early

As with every property deal, you’re looking to build equity as quickly as possible. In a vibrant market, such properties are in short supply. Hence, it might take you several months to find the ideal replacement property when looking to make an exchange.

Given that you have 180 days to seal the deal, time is a luxury you can’t afford. The countdown begins once you close the sale on the current property. For the best results, begin your search long before putting your property on the market. That way, you can beat both the 45-day and 180-day deadline.

Have the Financing Ready

A property exchange allows you to buy properties worth up to twice the value of the current property. In such a case, it might mean that you’ll need a line of credit to finance the remaining amount. To avoid undue delays when the countdown timer is running, get pre qualified for a loan.

Otherwise, if the money doesn’t come through on time, the exchange falls through. If that happens, you’ll not only lose the opportunity but also have steep capital gains to contend with. To add insult to the injury, you’ll be saddled with costs incurred during the failed exchange process.

Taking part in a 1031 property exchange is a credible way to improve your real estate holding. However, you need to tread carefully to avoid common pitfalls that could ruin the entire process.

August 22, 2018 at 7:36 pmMind of Money

The Process of Buying a House in Ogden, Utah

real estate talking with a coupleOne of the advantages of buying a house in Ogden, Utah is the cost of the real estate. According to Zillow, the average home price is $188,500. It can increase by 2.6% in 2019, but it’s still significantly cheaper than that of Salt Lake City. A home may already be worth $352,000, and it has the potential to go up 3.4% the following year.

The process of buying a home in Ogden is also easy, but time-consuming and lengthy. A homeowner who’s not prepared or not aware how it works will surely make many mistakes. As an overview, to purchase a house in the area involves the following:

Pre-qualification

A potential homebuyer can skip this process, but they are putting themselves in a serious financial problem. This step helps them know how much the lender is willing to offer and the possible maximum price of a home they can get.

One of the biggest concerns is how much down payment the applicant can provide. The higher the amount, the better since it lowers the monthly amortization. They may also avoid paying for private mortgage insurance.

A down payment, though, is a lot of money. It’s about 20% of the total home price. Getting a down payment assistance in Ogden from firms like Wasatch Peaks Credit Union may be necessary.

Home search

After the homeowner is pre-qualified, they can already use the information to look for a house that fits their budget. A real estate agent or broker can help at this stage. A person, though, may have to look at about 10 houses before they can find the best one for them.

Offer

Once they have chosen a house, they should be ready to make an offer. The buyer’s agent can assist with this one. The goal here is to increase the chances of having the offer accepted. It may, therefore, help if the individual can provide an earnest money deposit.

After the offer, there may be a period of almost no activity. This is the time when the seller makes a choice, and the lender processes the necessary documents and closing costs in case the buyer wins the house.

Remember, this is the simplistic version of securing a house. For those who have never experienced it before, it may be confusing. Buyers can always benefit from having the right help.

May 31, 2018 at 6:41 pmStudy Section