Trust-held Special Assets: Residential Real Estate

Apr 19, 2023 | Special Assets

One of the most common Special Assets held in trust is the beneficiary-occupied home. Cumberland Trust’s Special Assets Administration team, along with trust administrators, work with clients to ensure that these homes are properly managed, maintained, and insured. 

As an independent, directed trustee, Cumberland Trust is well-positioned to understand and help families retain unique special assets held in trust. We specialize in education, administration, and client service, while the client’s chosen professional advisors manage the trust’s assets. This distinct difference sets Cumberland Trust apart from other corporate fiduciaries and allows us to focus on providing our clients with high quality, personalized trust and estate administration services.

Cumberland Trust has a dedicated Special Assets team comprised of professionals who have years of experience working with complex assets, such as residential real estate. In keeping with Cumberland Trust’s directed trust platform, our team coordinates the Special Asset management in conjunction with an external property manager selected by the client(s). The property manager can be a family member, third party individual, or a professional property management company. This arrangement empowers clients to remain involved with the Special Asset management. The property manager is responsible for communicating with the Trust Officer and Special Asset Administration Officer regarding routine maintenance and notifying Cumberland Trust if any larger problems or issues occur.

Regardless of whether a family property manager is appointed, Cumberland Trust’s Special Assets Administration team has many responsibilities when administering trust-owned homes:

  • Maintenance and Repairs – Cumberland Trust has developed relationships with nationwide vendors that specialize in the maintenance of our trust-owned homes.
  • Property Taxes – Cumberland Trust coordinates the payment of property taxes for city, county, and school district payments, which can vary considerably. We have systems in place to ensure timely payments.
  • Purchases and Sales – When, for various reasons, a client’s trust-owned home is no longer meeting their needs, Cumberland Trust’s Special Assets Administration team will coordinate sales and purchases.  Our streamlined, comprehensive process helps clients receive competitive prices from a home sale, and value in a home purchase.
  • Appraisals and Inspections – Our Special Assets Administration team coordinates regular inspections and appraisals of properties to determine any changes in market value or condition of the homes and helps identify any needed maintenance or repairs.

In addition to beneficiary-occupied homes, Cumberland Trust also handles these responsibilities for other trust-owned real estate, including vacation homes, and rental and commercial properties. It is important to consult an estate planning professional who can help you develop a strategy for your estate plan that is right for you and your family’s specific circumstances, while considering any Special Assets.