I want to Purchase a Property From a Family Trust

I have a friend that I’m talking with about purchasing an 8 unit apartment building from. The property is one of several that is in his family’s trust. The mother has let the property get completely run down to the point where they can’t even get a property management company to take it over and clean it up. My friend is resistant to selling because the members of the family in the trust don’t want a brother to get any of the money from a sale. Is there some creative way for me to purchase this property from the trust that would make everyone happy?

Howdy Pat:

Get the family to deed the property to the friend at whatever is owed on the property. If it is free and clear the family can receive the current basis for the property without tax liability as long as they are not subject to depreciation recapture. I do not know much about this and it can get confusing. Perhaps they should discuss with a Tax CPA. This may be a problem with the family with an attitude of just let it be cause we got too many headaches already. Once the friend has the deed you can buy it at an agreed upon price.

This is just one idea. I will ponder the question some more and hope to get some more ideas from other members.