In the world of commercial real estate, trusts are legal instruments that are often used to designate what happens to property after an owner passes away. Trusts come in several different types – each with their own idiosyncrasies. In this article, we are going to discuss three types of trusts that are commonly used in commercial real estate transactions.
Living Trusts
The most commonly used trusts in the commercial real estate world are living trusts (also known as inter-vivos trusts). As the name suggests, a living trust is set up by the trustor while they are still alive and may detail distribution of assets during or after their life.
Testamentary Trusts
As opposed to living trusts which are created while the trustor is still living, testamentary trusts are created by a trustor’s will after they die. The testamentary trust itself operates as the trust agreement in these cases when title insurance is involved.
Commercial Partners Title Company
Commercial Partners Title Company is here to help you through all the details of your next commercial real estate transaction. We have decades of experience in the commercial title industry, which we can put to work on your next transaction. Our team of title closers, escrow agents, and underwriters is well equipped to manage all the aspects of your commercial transaction from the beginning all the way through closing. Contact us today at our downtown Minneapolis offices to set up a time to discuss the details of your next commercial real estate transaction.