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Its uses are:
- To control or purchase real estate
- To protect confidentiality
- To limit liability
- To help with "DOS" clauses in some cases
Land trusts have been used since 1868 in one form or another and became recognized by statute or case law in many states.
A land trust is a vehicle that holds real estate nothing more nothing less.
The trustee has the power to convey or deal with the property at the direction of the trust beneficiary. The beneficiary, on the other hand, retains the power to use, convey, or manage the land and holds any other number of rights as directed by the beneficiary and the trust agreement.
The process in it self is simple:
The owner of the subject real estate transfers title to the property over to the trust by way of deed and enters into a trust agreement with the trustee and a beneficiary agreement with all beneficiaries.
A trust is just an agreement to hold or manage assets by a trustee for the benefit of another.
Different types of trusts are used based upon needs and goals. They will vary in use, flexibility, control and asset distribution so I have taken the liberty to share some information about other forms of trust below.
Personal Residence Trust - A personal residence trust involves the transfer of a personal residence to a trust with the grantor retaining the right to live in the residence for a fixed term of years. Upon the shorter of the grantor's death or the expiration of the term of years, title to the residence passes to beneficiaries of the trust. This is an irrevocable trust with gift tax |
