Land Trusts
What is a land trust?
A Land Trust is a form of holding title to property; it takes legal ownership over a property - in some states properties - at the instruction of the property owner. Land trusts offer anonymity for the property owner and shield the owner’s assets in the trust.
In a land trust, a person known as the trustee takes control of the property under the trust for the benefit of a beneficiary who is often the real property owner or a potential buyer. The beneficiary then controls the actions of the trustee.
Land trusts are one of the oldest and most trusted ways to hold title to real estate. At Midland, we offer a specialized land trust to meet your unique needs.
Why use a land trust?
Three reasons to set up a land trust are confidentiality, estate planning and liability protection.
Confidentiality
Once a property has been retitled under the land trust, it is now registered under the trust’s name. This means that the property owner is now the trust instead of an individual which protects the owner’s information. The only name that will appear on public records is the name of the trustee.
Estate Planning
Land trusts offer easy assignability to pass the trust or property on once the grantor or beneficiary has died. This keeps the property out of probate.
Liability Protection
The property owner can be protected from certain liabilities because the property has been separated from the person. It is then owned by the trust, so all legal action has to go through the trust.
Who are the parties in a land trust?
The three main parties in a land trust are the grantor, the trustee and the beneficiary.
-
Grantor
The person who creates the trust and titles the property in its name
-
Trustee
The person who oversees the trust and makes necessary decisions
-
Beneficiary
The person who receives the benefits from the trust and controls the actions of the trustee
What are the key features of a land trust
Three key features of a land trust are they are revocable, the relationship between the trustee and beneficiary and it can only hold title to real estate.
-
They are revocable
This means they can be altered or terminated and should be used during the person’s lifetime to manage properties.
-
Center of Control
The beneficiary retains all control, and the trustee acts at the direction of the beneficiary The trustee manages the trust and makes decisions relating to it while the beneficiary gains benefits from it.
-
A land trust can only hold title to real estate
The properties allowed can include commercial buildings or homes as well as notes and mortgages.
Get started quickly
A Land Trust is a form of holding title to property; it takes legal ownership over a property - in some states properties - at the instruction of the property owner. They offer anonymity for the property owner and shield the owner’s assets in the trust.
In a land trust, a person known as the trustee takes control of the property under the trust for the benefit of a beneficiary who is often the real property owner or a potential buyer. The beneficiary then controls the actions of the trustee.
Simple and easy to use
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
What elements define a Land Trust?
In order to create a land trust, there are four main elements and documents that must be present: named parties, clear intent, dead in trust and a land trust agreement.
-
Named Parties
All three parties - Grantor, Trustee, and Beneficiary must be named directly. There can be multiple people or organizations named within each party.
-
Clear Intent and Purpose
The purpose of the trust must be clear, specific, and legally permissible.
-
Deed in Trust
This document titles the property into the land trust. The Deed in Trust is publicly filed, and the trustee will be listed with privileges of managing the property.
-
Land Trust Agreement
The Trust Agreement is signed by all parties and lists all the powers and instructions for the trustee to carry out for the property. This does not have to be publicly recorded. This document is prepared by Midland Forms.
Land Trusts offer a simple way to keep property ownership private and streamline the role of property within estate planning. Midland Forms can help walk you through the process and answer any questions you may have. Let us help you today!