Land Trusts
Land trusts make important benefits available to every owner of real estate, whether that real estate is residential, commercial, or investment property. Holding title in a land trust offers many advantages, including the following:
PRIVACY
The beneficiary retains control of the property while maintaining privacy of ownership.
PROBATE AVOIDANCE
A land trust is a low-cost alternative to a living trust.
EASE OF CONVEYANCE
Transfers of interest can be simple and private.
CONVENIENCE
Land trusts make it easier to transfer interests or to use the property as collateral.
How Does It Work?
- The current owners deeds the property into the land trust, naming a trustee, such as a Land Trust Company, and perhaps a beneficiary or succession of beneficiaries, much like they would for an insurance policy or retirement account.
- The trust agreement, a long standing form that is generally the same throughout Illinois and Indiana, will name the holder of the “beneficial interest,”usually the owners deeding property but not limited to that.
- The trust is there to protect the beneficiary from most public records searches other than those allowed by law to governmental agencies.
- The owners will also name someone, perhaps themselves or others, as the holder of a “power of direction,” allowing them to act on behalf of the trust for financing or other purposes.
- The holder of the power of direction can be changed by the beneficiaries and the beneficiary can also be changed.
- The land trust is a way of dealing with real estate as a financial asset, creating a flexible process to pass ownership to future generations or implementing other planning ideas.
If you are interested in utilizing a land trust, talk to one of our attorneys to discover if a land trust is right for you. Find out more https://www.ralislaw.com