The Real Estate Investment Trust: State Tax, Tort, and Contract Liabilities of the Trust, Trustee, and Shareholder

This Comment will attempt to alert potential investors in and trustees of REITs to the full extent of the liabilities that they could suffer for contract debts incurred in the name of the trust and torts committed by trust personnel. Since state tax considerations also play a significant role in investment decisions, the manner in which each state taxes the REIT and its shareholders on income derived from property and business in that state will also be investigated. Finally, a rational path out of the morass created by current state law will be articulated in order to prompt renewed discussion in Congress and in the state legislatures and courts on a cogent policy for dealing with the liabilities of the REIT, its trustees, and its shareholders.