Information About Land Trusts

The trustee is listed on all public records as owner of the land so someone examining the public land records cannot see that you are the owner of the property. In fact, absent unusual circumstances, the public need never know who is the property's real owner.

When property is held by more than one person the title may become unmerchantable by reason of death, a judgment against one of the owners, divorce or any of numerous other reasons. With a land trust, the title remains merchantable thus avoiding a possible cloud on the title.

By designating a contingent beneficiary you can avoid the trust property being included in your probate estate. This avoids the expense of probate as well as shielding the disposition of your property from the public.

It has been common practice to create a joint tenancy in real estate holdings solely for the purpose of providing a succession of ownership on death. Under joint ownership, however, either of the joint tenants is given an immediate interest in the ownership and management of that property; and in many cases it handicaps the real owner in his or her dealings with the property without the written consent of the joint owner and the other spouse. Under the Land Trust Agreement, the party creating the trust, can, if he or she so desires, retain sole control over the property during his or her lifetime with the desired succession in ownership becoming effective upon his or her death without the expense of going through probate.

Where there are multiple owners you can designate one person to direct the trustee. This avoid the necessity of having to get signatures from all the owners and their spouses.

In many estate planning situations it is advantageous to dispose of a partial interest in an estate. A land trust simplifies this procedure by allowing the transfer of a partial interest by way of an assignment, which need not be recorded in the public records.