Celebrities purchase their mansions through a family trust or just a trust, What does that mean?

william p: Celebrities purchase their mansions through a family trust or just a trust, What does that mean?
Common 9 to 5 people purchase their homes through the bank by putting so much down and the bank will lend the rest but I hear celebrities purchase their homes through a trust or a family trust. Can anyone explain that to me?

Answers and Views:

Answer by [email protected]
Putting the house in a trust. Protects it being taken in law suits.

Answer by efflandt
The most common type of trust would be a (revocable) living trust, which still gives you rights to do anything with it as long as you are living. It does NOT protect it from creditors, lawsuits, or taxes but passes it on to heirs without going through probate (probate can cost a lot of money).

A non-revocable trust could protect it from a lawsuit against you personally, but you would no longer have any control over it, and would not be able to sell it or make changes to the trust. So I doubt if they would do that unless they were dying.

My sister has her home in a living trust, so it can benefit her daughters without her ex being able to get his hands on it (he already got her 401k, while she got the home free and clear).