Good morning Randy,
How does the Land Trust help with taxation? Elderly great aunt owns house free and clear in NJ. Trying to figure out how to put house in trust to avoid taxation on transfer of ownership
You cannot avoid federal/state taxation by putting your property into a land trust and then having the beneficial interest pass to the successor beneficiary upon the primary beneficiary’s death. But, you can avoid probate and make for a very smooth transition to the successor beneficiary. You can also avoid the due-on-sale clause, transfer tax and reassessment upon sale when selling the beneficial interest in a land trust.
Mr. Land Trust