Frequently Asked Questions
Trusts
Ownership by a trust is different from individual ownership and RCSC Bylaws and Board Policies address the ownership by trusts.
The information below is intended to provide information for the broad majority of cases. Feel free to email Cardholder Services or call 623-561-4603 if you have questions how the RCSC Bylaws and Board Policies affect your specific situation or trust. We can arrange a time for you to bring in your trust documents for review.
- If I place my property into my trust will RCSC assess me a Preservation and Improvement or Transfer Fee?
- If I place my property into my trust will RCSC change my annual assessment amount?
- Why are trustees and beneficiaries who do not “own” the property assessed annual fees?
- Can these trustees and beneficiaries of my trust use RCSC facilities since they are now recognized as property owners or assessed annual fees?
- Can all trustees and beneficiaries that meet individual Member qualifications receive a Member Card?
- Will my spouse be eligible to receive a Member Card when I place my property into my trust?
- If we were “grandfathered” in at the lower, per person assessment amounts how can the higher fees apply to us?
- I transferred my property into my trust 10 years ago. Am I being charged for increased assessments for the past 10 years?
- When my trust distributes ownership in my property to the trust beneficiaries will a Preservation and Improvement Fee or Transfer Fee be assessed to the beneficiaries?
- Do my beneficiaries need to take ownership title outside of my trust in order to sell my property after my death?
- Can my beneficiaries place the property into their trust to prevent the assessment of Preservation and Improvement or Transfer fees?
No, provided that the current owner(s) of the property are named in the trust as the grantor(s), as well as either trustee, co-trustees or beneficiaries.
Maybe. If your assessment basis is per property, there will be no change. If your assessment basis is per person, then it may change considering your current annual property assessment and the following: For properties transferred into a trust prior to 2/1/2003, owners are responsible for assessments for all legal and beneficial owners which include trustee, co-trustees, successor trustees and all beneficiaries in accordance with the Facilities Agreement executed when the property was purchased. As a result, in most cases the total annual per person assessment amounts for these trust interests would be greater than a per property assessment. RCSC recognizes that it is in the best financial interest of the owner to change the assessment basis to a per property assessment in these situations and therefore a new Facilities Agreement should be executed. For properties transferred to a trust after 2/1/2003, the transfer is a change in legal or beneficial interest that would result in an assessment basis change to per property in accordance with RCSC Board Policy No. 28.
When the property was transferred into the trust it is no longer owned individually by the original owner(s), and all trustees, co-trustees and beneficiaries have an ownership interest in the property. Because these individuals now have an ownership interest, they are eligible for a per person assessment by RCSC if that assessment basis applies for that property.
Maybe. Trustees and beneficiaries of trusts may be eligible for a Member Card provided that they meet the individual Member qualifications of Article II, Sections 1.A and 1.B of the RCSC Corporate Bylaws. If none of the trustees, co-trustees or income beneficiaries meet said qualifications, no person(s) will be eligible for a Member Card. Up to two Member Cards may be provided for each property and each individual qualified as a Member shall be issued no more than one Member Card, regardless of whether more than one Sun City property is owned and assessments and fees are paid.
No. Regardless of the assessment type, per person or per property, no more than two (2) Member Cards will be issued on a property for owners who meet the individual Member qualifications.
Maybe. If your spouse is identified in the trust documents as a trustee, co-trustee or beneficiary and they meet the individual Member qualifications they would be eligible for a Member Card. Otherwise your spouse is not an owner of the property and not eligible for a Member Card.
For properties transferred into a trust prior to 2/1/2003, owners are responsible for assessments for all legal and beneficial owners which include trustees, co-trustees, successor trustees and beneficiaries in accordance with the Facilities Agreement executed when the property was purchased. As a result, in most cases the total of the annual assessment amounts for these trust interests would be greater than a per property assessment. RCSC recognizes that it is in the best financial interest of the owner to change the assessment basis to a per property assessment in these situations and therefore a new Facilities Agreement should be executed.
For properties transferred to a trust after 2/1/2003, the transfer is a change in legal or beneficial interest that would result in an assessment basis change to per property in accordance with RCSC Board Policy No. 28.
No. RCSC is in the process of correcting its ownership records going forward and is not invoicing assessments for prior years. Although RCSC is legally entitled to do so, the RCSC Board of Directors has elected to make the change going forward until the audit of the ownership records for each property in Sun City has been completed and all records have been corrected.
Yes. When the ownership in a property changes and the original owner who paid the Preservation and Improvement Fee (“PIF”) no longer retains a majority ownership interest in the property a Preservation and Improvement fee will be assessed to the new owners in accordance with Board Policy No. 24.
Maybe. This is a question best answered by your legal or financial representative. RCSC cannot advise you on specific actions to take regarding your property ownership. As noted above, the change in ownership title to the beneficiaries will result in the assessment of a Preservation and Improvement Fee and Transfer Fee. If the property is sold while owned by the trust these fees would not be assessed by RCSC.
If the intention of the beneficiaries is to sell the property and if the property remains in the name of the trust, neither a Preservation and Improvement Fee nor Transfer Fee will be charged to the beneficiaries. While there is a provision in Board Policy No. 22 that the Preservation & Improvement Fee may be reimbursed to an heir if the property is sold to another owner within one year of the inheritance, beneficiaries of a trust are already owners so this provision does not apply.
No. Because the original owner no longer retains a majority ownership interest in the property and the Preservation and Improvement and Transfer fees will be assessed.