Our firm has compiled a general definition of a land trust and how this could benefit you.
For most individuals, the home is their largest asset that they will acquire during their lifetime. It makes sense to protect your asset, which can be done with a land trust.
A land trust is a private legal document in which you as the property owner transfer the property title to a trustee. The trust agreement is between the trustee and the trustor. As the trustor, you can structure the agreement to remain the owner of the property and to retain all the legal rights to the property which includes, but is not limited to the option: to rent, repair, sell, or transfer the property to your heirs.
Benefits of A Land Trust
There are many benefits to holding your property in a land trust. There is a privacy benefit to holding the property in a land trust because the owner of the property can remain anonymous.
It’s important to note that ownership of property is part of the public record, so your individual
name in most cases is on the tax bill and the deed. Anonymity is particularly relevant for certain
civil legal liability, tax liability, and certain debt collection.
Plan For The Future
As it relates to estate planning, the land trust allows you to control how your property is
distributed after you are deceased. A land trusts allows your property to avoid probate. Probate is
the judicial process of proving a will in a court of law, so that the document is accepted as a valid
last testament of the deceased, and also in intestacy estates where the estate must be settled
according to the state’s laws of intestacy. The probate process is public. Additionally, probate can
be lengthy, expensive, and time consuming to disperse your estate. If you have questions about
estate planning, please contact our office.
If you have any questions about a land trust, one of our attorneys can be available for a free
consultation to discuss more details on your specific real estate requirements.