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Trust Explainer

SixtyFive was created to help retirees age in place with a flexible supplemental income without incurring additional costs or risk of foreclosure. Using our unique trust investment structure, we provide a monthly income during your retirement years that can be repaid at your own pace or upon the sale of the property.

Trust and Sub-Trust Agreement Explainer

SixtyFive’s home equity investment product offers homeowners aged 60 and above the ability to access the equity locked within the value of their homes. We provide monthly income deposits of up to $3000 which either need to be paid back
1) at any point you decide to end the agreement
2) upon the death of the homeowners or the sale of the property
3) without repayment, as a portion of shared equity with SixtyFive as the designated beneficiary.

How does it work?

SixtyFive has created a trust investment structure where the total value of the house is split into portions known as “trust units”. Each trust unit has the same value e.g. If the house is worth $100,000 the trust will be made up of 100,000 units at a value of $1 each. Upon establishment of the trust, a homeowner holds 100% of the trust units. Each month that SixtyFive provides a monthly income, that amount is converted into trust units that are allocated to SixtyFive e.g. If every month a homeowner receives the maximum amount of $3,000, each month 3,000 trust units (based on $1 per unit) will be allocated to SixtyFive. 

Upon the death of the homeowner, or in the event that the homeowner chooses to terminate their agreement with SixtyFive, the homeowner is able to repay the value of the trust units and the trust will be ended. If the homeowner withdraws from the agreement and decides not to pay back SixtyFive, then the trust units held by SixtyFive will convert into a percentage value of the property based on its “original value”, as set in the trust agreement.

How much does it cost?

SixtyFive only charges a service and management fee. The service fee is a monthly flat rate of between $20-$60 depending on the monthly income the homeowner receives. This amount is automatically deducted from the monthly income to prevent additional out-of-pocket expenses. 

The monthly management fee is equal to one twelfth multiplied by prime+400 bps. The outstanding balance can either be paid off by the homeowner within their lifetime or by their heirs within 365 days upon the death of the homeowner. If within 180 days, SixtyFive has not been paid back nor has SixtyFive been given any indication that the heirs are planning to pay back the outstanding balance, then SixtyFive as a primary beneficiary, has the right to prepare and list the property for sale. If after one year since the passing of the homeowner, SixtyFive has not been paid back the outstanding balance, then SixtyFive has the right to initiate the sale of the property.