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Real Estate; Estate Planning

EAC recently completed a report for the purpose of gifting. The requesting party needed a value for a minority interest in a real estate property valued at over $1.5MM. The minority interest was to be transferred into an Inter-Vivos trust. EAC’s understanding of the distinctions between a controlling, and non-controlling interest in a real estate property helped deliver an acceptable, defensible result to our client.

‣ Industry: Real Estate
‣ Standard of Value: Fair Market Value

What is an Inter-Vivos Trust?

A trust created by a writing (declaration of trust) which commences at that time, while the creator (called a trustor or settlor) is alive, sometimes called a “living trust.” The property is then placed in trust with a trustee (often the trustor during his/her lifetime) and distribution will take place according to the terms of the trust—possibly both during the trustor’s lifetime and then upon the trustor’s death. This is different from a testamentary trust which is created by the terms of a will and places some assets from the dead person’s estate in a trust to exist from the date of death and until fully distributed.