FamilyTrusthouse/retirement village
| # | Post |
|---|---|
| 1 | House owned in family trust, son and daughter only on trust,parent thinking of going into retirement village,Question Can the trust buy the right to occupy a villa for the parent in the retirement village or will the parent have to buy the right to occupy,and if the family trust home sells for say $800k and the right to occupy villa is say $550k what happens to the remaining monies after lawyers etc have been paid.TIA didee - 2021-09-04 08:18:00 |
| 2 | The short answer is yes - the trust can buy the ORA sarahb5 - 2021-09-04 09:25:00 |
| 3 | didee wrote:
The short proper answer is that it depends. Some villages allow for the purchase of the occupation right in the name of a family trust. Others take the view that this is a personal right only and cannot be owned by a trust. johnston - 2021-09-04 09:54:00 |
| 4 | didee wrote:
The balance is as per the Trust Deed. johnston - 2021-09-04 09:56:00 |
| 5 | The Trust may be able to pay for the ORA, but the ORA is in the name of the individual. There is no RV I am aware of that has the ORA in the name of the Trust - I don't see how it would fit under the RV Act because of the definition of "Resident". In cases where the Trust pays for the ORA, there would be a Deed of Wishes or similar that reflects the transaction, or maybe a loan. robandsue - 2021-09-04 11:28:00 |
| 6 | robandsue wrote: sarahb5 - 2021-09-04 11:55:00 |
| 7 | If the OP means pay for the ORA then it depends on the Trust Deed. If the OP means own the ORA then as I posted earlier. johnston - 2021-09-04 13:37:00 |
| 8 | Most of the retirement villages operate on a "personal" RTO so that the villa returns back to the village owners at the death of the "owners".. The village makes it money from "clipping the ticket" on the constant turn over of the villas.. If a trust owned it then it could just wheel in a new "resident" when ever the old one passed away.. onl_148 - 2021-09-07 09:31:00 |
| 9 | onl_148 wrote:
Does any other seller? In the op's case it depends on the trust deed. johnston - 2021-09-07 10:11:00 |
| 10 | The retirement village my MIL is going to won't allow the trust (family, just a son and daughter) to buy it, it has to be her name only. lyl_guy - 2021-09-07 10:24:00 |
| 11 | lyl_guy wrote:
This is where the original poster was not clear. In your case the village won't allow the ORA to be held in the name of a trust. The village will however allow the trust to pay for the ORA. johnston - 2021-09-07 11:02:00 |
| 12 | johnston wrote: Ah yes, I see what you mean. lyl_guy - 2021-09-07 11:08:00 |
