Trusts
The credit facility is granted to the trust—both Revocable and Irrevocable. This eliminates many of the pitfalls that are encountered when borrowing from conventional lenders.
Conventional lenders require the property being vested in the name of an individual(s)
In many cases, once the transaction is complete the individual does not deed the property back into the trust; in the majority of cases the estate plan is then in jeopardy if the asset remains outside of the trust requiring probate administration.
There is no requirement that the trust convey property to an individual prior to funding.
Proceeds from the credit facility are used for a variety of purposes, such as:
- Rehabilitate real property.
- Cash distributions to trust beneficiaries.
- Additional trust investment.
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