Introduction
Real estate trusts and family trusts are two of the most powerful vehicles available for accumulating and preserving generational wealth. By allowing assets to pass from one generation to the next, these two types of trusts can be used to protect and maximize wealth for future generations. This report outlines the key characteristics of real estate and family trusts, provides an overview of the advantages of using these vehicles to create wealth, and explains how they can be employed to structure estates.

What Are Real Estate Trusts and Family Trusts?
Real estate trusts are legal entities that allow individuals or organizations (trustees) to hold real estate assets on behalf of beneficiaries. These assets can include residential property and investment properties, as well as other real estate assets such as land and commercial properties. Trustees are obligated to hold and manage the assets for the benefit of the beneficiaries, ensuring that the trust’s goals are met.

Family trusts are similar to real estate trusts, but they are created to manage and protect family assets, such as investments or wealth that is intended to be passed down to future generations. By establishing a trust and appointing a trustee, assets can be distributed to beneficiaries in accordance with the wishes of the grantor.

Advantages of Using Real Estate Trusts and Family Trusts

Real estate trusts and family trusts offer a variety of advantages to those looking to create generational wealth. These include:

• Asset Protection: By transferring assets into a trust, grantors can protect their investments from creditors, lawsuits and other forms of litigation. Trusts also allow for more control over assets, allowing for a more tailored approach to managing them.

• Protection from Taxes: Real estate trusts and family trusts may be exempt from certain forms of federal, state, and local taxation. This can provide the grantor with substantial tax savings.

• Avoiding Probate: Transferring assets into a trust allows for a quick and straightforward transfer of assets to beneficiaries upon the grantor’s death, bypassing a costly and lengthy probate process.

• Benefit from Professional Management: By appointing a trustee (who can be a professional manager) to manage the trust, owners can ensure that the trust’s assets are managed in the most efficient and effective manner.

• Security of Assets: All assets held by trusts are secure and are inaccessible by third parties unless specified in the trust documents.