What if an Equity Holding Trust property was to lose value during the term of the agreement?
If, at the end of the Equity Holding Trust the property couldn’t be sold (or purchased by the co-beneficiary) for enough to return the Settlor beneficiarys initial contribution (e.g., his/her equity at start); and should the non-resident choose not to reduce its refundable contribution amount, then the co-beneficiary could choose to simply vacate the property with no further obligation. Alternativelyby mutual agreementthe parties could extend the contract. Note that, as is the case with any real estate purchase, down payment moneys, or costs of improvements can, in fact, be lost due to ordinary downward trends in real estate demand.
Related Questions
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