Boat Trust Ownership
BoatWiki - Definitions
Definition
A trust in boat ownership terms is a fiduciary arrangement where a trustee holds title on behalf of a beneficiary. The trust is not typically viewed as a legal entity in itself, but rather a binding agreement among the parties.
Meaning
Trusts are typically formed for financial planning purposes, to accommodate estates, to minimize taxes and in situations where the beneficiary is incapacitated. These are strictly regulated on the state level, although there may be some variations in their individual rules.
Context
Trust boat ownership is fairly common within the marine industry. In these cases, title is held in the trustee's name rather than under the trust or beneficiary's name. However, this may not apply in all jurisdictions. The USCG requires ownership of a documented vessel to be placed under the trustee's name, but requires a list of all beneficiaries. The citizenship status of the trustees and beneficiaries is also a matter of concern.
Conclusion
Holding ownership in a trust can have both legal and tax implications. Boaters who are unfamiliar with this kind of ownership may wish to seek professional assistance when involved in these situations.
Please assist your fellow boaters by wiki-sharing any comments or experiences regarding this subject.
Credits and References
8/30/2022 - Page initiated by Team BoatWiki.
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