The 1031 Exchange Institute

Welcome to The 1031 Exchange Institute™. The 1031 Exchange Institute is your complete online resource for 1031 exchange, 1033 exchange, 1034 exchange, 721 exchange, 453 installment sale and 121 exclusion information.  Information will also be provided regarding Self-Directed IRAs, including Traditional IRAs, ROTH IRAs, SEP-IRAs and SIMPLE IRAs. 

The 1031 Exchange Institute is dedicated to educating and informing real estate investors and their advisors on the benefits of 1031 tax-deferred exchanges and other tax deferred and tax exlcusion strategies so they can make better informed investment decisions.

What is a Title Holding Trust?

The Title Holding Trust is an easy, convenient and inexpensive strategy for real estate investors to buy and hold legal title to real estate or even personal property.  The trustee of the Title Holding Trust holds title to the real estate or personal property under the terms of a trust agreement.  The beneficiaries of the Title Holding Trust retain 100% of the ownership rights.  The trustee merely holds legal title to the property.

Creation of the Title Holding Trust

Anyone can set-up and take advantage of a Title Holding Trust, including individuals, a group of individuals, partnerships, limited partnerships, limited liability companies, and/or corporations.

The trustee of the Title Holding Trust acquires and holds legal title to the real estate or personal property.  The beneficiary(ies) of the Title Holding Trust retains ownership and has the power of direction.  The trustee can not act without the written authorization of the beneficiary.

Management of the Property

The beneficiaries manage the property or hire property managers or other agents to oversee the property on their own behalf. The beneficiaries collect the rent or income and pay the expenses. The beneficiary insures, develops, finances, leases or sells the real property as deemed appropriate.

Fully Revocable

The Title Holding Trust is a fully revocable grantor trust and may be revoked or additional real estate or personal property can be contributed into the trust at any time. The trustee merely executes deeds, trust deeds, leases and otherwise deals with the property only upon written direction by the beneficiary. 

Personal Property

Courts have generally ruled that interests in the Title Holding Trusts are personal property. This interest includes the right to receive any income and any proceeds from the sale or mortgage of the property. The beneficiaries reserve the right to live on or otherwise possess the real estate. Their interest in the trust, as personal property, may be assigned without the formality of executing and acknowledging a deed.

Click here to learn about the benefits of using a Title Holding Trust.