Family Dispute Solutions

As I spoke of yesterday, there are many solutions to a family squabble over who should, or will, hold title to real estate. In fact, each family has different characteristics which dictate what's best for everyone. If there is a concern about one family member not having good enough credit to buy property that he or she will be entitled to, and other family member's can and are willing to hold title in their name, some attorneys would recommend that the title can be held as a "constructive trustee", that is, someone who holds legal title for the benefit of another. Is this a good solution? Sometimes. Depends on the persons involved. Make sure it's in writing. Make sure there is language which covers contingencies. For example, what if the beneficial owner doesn't want the property later or gets in trouble and cannot take over the title. Who gets it then? And how? And is the beneficial compensated for his or her forebearance? There are many questions to answer, but if the language in a trust agreement is clear to everyone, and is complete, a potentially ugly arrangement can be addressed before it becomes a problem. More scenarios and solutions later.