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Trust development in land gifting issue

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mawhelchel99

New member
What is the name of your state?Alabama

We will be receiving a gift of land from parents. Parents would like to have some rights of access or saving some trees etc during their lifetime. Trust? This land is tied to a home mortgage we are taking out in September 2020. Would giving them access legally to the land via a trust or aggreement mess up the gift?
 


Zigner

Senior Member, Non-Attorney
What is the name of your state?Alabama

We will be receiving a gift of land from parents. Parents would like to have some rights of access or saving some trees etc during their lifetime. Trust? This land is tied to a home mortgage we are taking out in September 2020. Would giving them access legally to the land via a trust or aggreement mess up the gift?
You should speak to a local attorney for assistance.
 

Taxing Matters

Overtaxed Member
What is the name of your state?Alabama

We will be receiving a gift of land from parents. Parents would like to have some rights of access or saving some trees etc during their lifetime. Trust?
You don't need a trust to do that There are other ways to do it, including them reserving a life estate in the property, granting them a privilege to use the property, giving them a lifetime lease to the property, etc.

This land is tied to a home mortgage we are taking out in September 2020.
Then you'll need to make sure that lender will be ok with the arrangement.

Would giving them access legally to the land via a trust or aggreement mess up the gift?
Probably not, but it depends on how it it's done. Also, the use of a trust may end up having adverse tax consequences depending on how it is done.

I suggest you consult a real estate attorney and tax attorney about this to ensure you can satisfy the goals you have in mind in the most satisfactory way and in a way that won't have tax disadvantages.
 

LdiJ

Senior Member
What is the name of your state?Alabama

We will be receiving a gift of land from parents. Parents would like to have some rights of access or saving some trees etc during their lifetime. Trust? This land is tied to a home mortgage we are taking out in September 2020. Would giving them access legally to the land via a trust or aggreement mess up the gift?
What do you mean be "saving some trees"? Do they want the authority to prohibit you from cutting down any trees or do you mean something else? If you intend to build on the land you may find it very problematic to have to have parental permission to cut down any trees.
 

zddoodah

Active Member
We will be receiving a gift of land from parents.
Who are "we"? Your parents or the other person's parents?


Parents would like to have some rights of access or saving some trees etc during their lifetime. Trust?
I'm not sure if this is intended to be a question or, if it is, what the question is.


This land is tied to a home mortgage we are taking out in September 2020.
Huh? It "is tied" to a mortgage that doesn't exist yet? How could it be "tied" to something that doesn't yet exist?


Would giving them access legally to the land via a trust or aggreement mess up the gift?
I'm not sure what "mess up the gift" might mean, but the parents are generally free to do as they please with their property, and there would be nothing "messed up" about entering into an agreement whereby they confer title in exchange for whatever rights they want to retain.
 

LdiJ

Senior Member
Who are "we"? Your parents or the other person's parents?




I'm not sure if this is intended to be a question or, if it is, what the question is.




Huh? It "is tied" to a mortgage that doesn't exist yet? How could it be "tied" to something that doesn't yet exist?




I'm not sure what "mess up the gift" might mean, but the parents are generally free to do as they please with their property, and there would be nothing "messed up" about entering into an agreement whereby they confer title in exchange for whatever rights they want to retain.
I agree that you can't really "mess up the gift" but depending on what rights are retained, it might cause problems in getting a mortgage. However the OP doesn't seem to want to answer any question and that doesn't help us give good advice. I still would like an answer to my question about "saving some trees".
 

zddoodah

Active Member
you should consult a lawyer for an advice
It is generally frowned on to resurrect long-dormant thread -- especially if the only content in your post is to consult with a lawyer (which is pretty well pointless unless you accompany it with some sort of substantive response).
 

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