It’s critically important to understand that the extent of protection turns largely on state law issues.
Importantly, a court can undo an individual’s transfer to a trust if it finds that the transfer was made with the intention of defrauding creditors.
But it might be awkward if her heirs had no involvement or interest in the business. LLCs are organized under the terms of an operating agreement, which should specify what will happen in the event a member dies.
If the operating agreement allows for continuation on the death of a member, new members can be admitted upon a vote of the remaining members.
("CCIT III") is a non-listed REIT that invests primarily in single-tenant, mission-critical office and industrial properties that are essential to the day-to-day operations of a company.
Learn More Cole Credit Property Trust V (CCPT V) purchased a retail location in East-Central Texas leased to Walgreens, a specialty retailer that focuses on the sale of general merchandise and pharmacy goods and services.
Due to this change in ownership, a future creditor cannot satisfy a judgment against the assets held in irrevocable trust.
This is true even where the trust creator establishes himself as the beneficiary of a discretionary trust.
("CCPT V") is a public, non-listed REIT that intends to invest in income-producing necessity retail commercial real estate primarily leased to creditworthy tenants under long-term, net leases.
Cole Capital defines necessity retail properties as those that provide goods and services that consumers need on a daily basis.
Once the trust creator establishes an irrevocable trust, he or she no longer legally owns the assets he or she used to fund it, and can no longer control how those assets are distributed.
By creating an irrevocable trust, the trust maker surrenders the ability to later modify the trust instrument.
INAV intends to invest primarily in necessity commercial real estate across the retail, office and industrial sectors.