Indirect ownerships are those in which land is owned by a legal entity rather than by a person.
Ownership Type | Features | Pros | Cons |
Limited Partnership | * Formed by agreement. * At least one general partner required, others may be limited partners. * Because property is owned by limited partnership, no change in deed at death; instead, partnership interests transfer by will or lifetime gift. * Limited partnership can exist forever. | * Ownership interest may be transferred without deed. * Offers liability protection to limited partners. * Spells out agreement between partners-very flexible. | * More complex. * Annual reporting to IRS and state. * General partner does not get liability protection. * May be annual fee to state. |
Trust | * Formed by agreement created by donor, naming trustee and one or more beneficiaries. * Because property is owned by trust, no change in deed at death. * State law may limit length of existence of trust. | * Trustee manages for benefit of beneficiaries. * Usually offers liability protection to beneficiaries and trustee. * Trust instrument spells out duties of trustee and rights and benefits of beneficiaries. * No annual fee. | * More complex. * Annual reporting to IRS and state. * Income held in trust that is not passed out to beneficiaries likely taxed at higher rate. |
Limited Liability Company (LLC) | * Formed by agreement. * Usually consists of member(s) and manager(s). * Because property is owned by LLC, no change in deed at death; instead, ownership interest usually transfers by will or lifetime gifts. | * Ownership interest may be transferred without deed. * Offers liability protection to all members. * Operating agreement spells out agreement between members--very flexible. | * More complex. * Annual reporting to IRS and state. * Annual fee to state. |
Center for Private Forests
Address
416 Forest Resources BuildingUniversity Park, PA 16802
- Email PrivateForests@psu.edu
- Office 814-863-0401
- Fax 814-865-6275
Center for Private Forests
Address
416 Forest Resources BuildingUniversity Park, PA 16802
- Email PrivateForests@psu.edu
- Office 814-863-0401
- Fax 814-865-6275