Jerry Patterson, who has been closing real estate transactions for 40 years, noticed a new trend recently. As a partner at the venerable First Title and Escrow Company, the company founded by George Mudter in 1979, Patterson and his cohorts see as many closings as anyone in the Midstate area.

Most recently, he has seen a dramatic rise in properties being deeded to trusts, some revokable and others irrevocable.

In a city filled with celebrities, it is not unusual for the buyer or seller to have a property conveyed to a trust in order to protect their privacy. In those transfers, the name of the closing attorney will often appear as the trustee, a condition created by a land trust agreement, and in those instances the trustee’s main obligation is to hold title on the property and follow any and all requests from the beneficiary of the trust, Patterson says.

In these situations, the purchases are normally cash transactions with no loan involved, as the lenders will typically insist that the property is deeded to the borrower. However, Patterson noted that some trusts are formed in order for the property to transfer after the death of one of the owners without being forced to go through the probate process. In some situations, the trust can reduce tax consequences.

Financial planners and those in wealth management say trusts – be they revocable or irrevocable – allow more liquidity and allows funds to flow in the hands of the beneficiaries without having to wait at times as long as years to receive the money. Often, funeral expenses and other pressing financial matters need immediate attention during trying times for the beneficiaries, and having the funds to deal with monetary issues can alleviate pressure.

The names imply the difference between an irrevocable trust and a revocable trust. When an irrevocable trust is made, one estate planner explains, the gift has been given and will go to the beneficiaries as mandated in the trust agreement, usually the time of death of the person that establishes the trust. It is a completed gift and cannot be changed.

Be it to escape probate, to lower taxes or to establish the disbursements of assets at the time of one’s death, the formation of trusts has come into vogue.

Sale of the Week

Heather Boyd with Olde Towne Realty has been helping clients buy and sell homes for 15 years, often acting as a lay-contractor or amateur designer. It has paid off for her buyers and sellers, although she does not charge for her services in those areas.

She recently sold a house located at 6408 Worchester Drive for $2.2 million. Worchester – pronounced WAR-chester rather than the sauce Worcestershire sauce that translates to Wooster in some circles – is located in Devonshire Manor, and Boyd notes the development is 11 miles from downtown Nashville and within “walking distance to CPA.” That’s Christ Presbyterian School, not an accountant.

The history of the home is filled with iconic Nashville development and construction lore as James E. Patterson purchased the land in 1977 and developed the property. Patterson and partner Cecil Fox formed a construction company known as Patterson and Fox, which became one of the most revered companies in Nashville. The Patterson of the company died at a young age, and his son, Lyle, who was a college student at the time, replaced him and gained tremendous insight in the homebuilding business.

In recent years, Lyle utilized the knowledge when he was assistant city manager and director of Building and Zoning for the City of Belle Meade. Some consider him to have been the best thing that happened to Belle Meade in regard to zoning and construction.

His father sold the lot on Worchester to the equally revered Carl Hasty, a renowned builder in his day known best for a collection of presents he gave his customers upon completion of his homes. Listing agent Heather Boyd noted that this home indeed included the Carl Hasty time capsule consisting of a bottle of Jack Daniels, a set of plans for the home, a $100 bill and a list of all of the subcontractors and others who contributed to the construction of the residence.

The home has 6,427 square feet and sold for 4,388 per square foot. With four bedrooms, three full bathrooms and one half bathroom, the home features a remodeled chef’s kitchen and top-tier appliances, Boyd says.

Alley Christensen of Synergy Real Estate Network represented the buyer of the estate situated on a 0.94-acre lot. Her family is steeped in the Middle Tennessee real estate community, as well. More to come on her family later.

Richard Courtney is a licensed real estate broker with Fridrich and Clark Realty and can be reached at [email protected].