For Immediate Release:
07/14/10
Inaccurate information being circulated about trusts
It has been brought to our attention that inaccurate information is being circulated around Sun City about trusts. Ownership of a Sun City property by a trust is different from individual ownership and RCSC Bylaws and Board Policies address trust ownership. Please refer to the RCSC Corporate Documents which are available online at www.sunaz.com or from the Cardholder Services Office at the Lakeview Recreation Center.
Trusts are structured with beneficial interests, of which the Corporate Documents currently address the following two categories: Income Beneficiaries – those who receive direct benefit from the property and are vested (Grantors or Trustors of the Trust, generally husband and wife) and; Remainder, Contingent or Non-Vested Beneficiaries – those who are not vested and do not receive direct benefit from the Property (generally children and/or heirs).
First of all, there are absolutely no fees charged by RCSC for putting a Sun City property into a trust, as long as the Grantor(s) or Trustor(s) of the Trust are the original payor(s) of a Preservation & Improvement Fee (“PIF”) and Transfer Fee and retain a majority ownership interest in the Property as the income beneficiaries of the Trust.
Regardless of how a Sun City property is held in title, a PIF and a Transfer Fee will be imposed on the purchase, acquisition, transfer, inheritance, gift or any change in ownership of legal or beneficial interest in the title to Property located in Sun City, Arizona. Therefore, when a Sun City property is inherited, regardless of whether the Property remains titled under the Trust or not, these fees will be imposed. However, anyone who inherits a Sun City property may apply for a full refund of the PIF if the property is sold within one year. An application for such a refund must be made within ninety (90) days from the closing date of escrow for the Property.
The assessment basis (i.e. per person or per property) does not change as a result of placing a property into a trust provided that the current Owner(s) of the Property retain their ownership interest in the Property as the Grantor(s) or Trustor(s) of the Trust. No more than two of the current income beneficiaries of the Trust may be deemed to be Members, provided that they meet the individual Member qualifications: Must be 55 years of age or older (unless qualified under the spousal exemption) and occupy the Property as his/her primary Arizona residence unless his/her other Arizona residence is farther than seventy-five (75) miles from Sun City. A spouse who is not a Grantor or Trustor of the Trust is eligible for a Privilege Card for an additional fee.