Real Estate and Other Illiquid Assets
Real estate and other illiquid assets such as limited partnerships, limited liability
companies, and fractional ownership interests have always presented unique challenges
to bank trust departments. The sophisticated estate planning techniques developed
in recent years to reduce or eliminate gift and estate taxes only compound those
challenges. Consequently, many banks and trust companies are unwilling to serve
the trust and investmentwealth management needs of clients with substantial holdings
of real estate assets and complex trust arrangements.
On the other hand many affluent individuals and families have accumulated substantial
holdings of real estate, including multi-million dollar residential properties,
income and investment properties, farms, orchards, vineyards, and ranch land. In
many cases real estate represents the primary source of wealth accumulation. In
most cases the estate planning strategies and client preferences are to continue
to own and preserve these assets for the benefit of future generations.
The Montecito Bank & Trust Solution