Understanding Land Trusts
Real Estate Land Trusts
In a true Land trust, the Trustee's role is not to operate the trust, but simply to hold legal and equitable title to the real estate properties held within the trust. The Trustee serves as a figurehead - holding title and signing documents, contracts, deeds, etc., as directed by the beneficiary. The trust is actually controlled and operated by its beneficiary. Here are some key components to a Land Trust:
(a) Privacy - The title to the property is held in the name of a 'trustee', not in the investor's name, thus, providing more privacy. The investor retains control and management of the property and is the beneficiary and equitable owner of the trust's assets.
(b) Not a separate entity – A land trust is not a separate legal entity and does not give limited liability the way an LLC does.
(c) Tax Ramifications - None: Land trusts are grantor trusts, NOT separate tax entities.
(d) LLC Combination For Enhanced Privacy & Protection: If an LLC is made the beneficiary in a land trust, then the land trust\LLC combination should insulate you even further with more privacy.
Learn more about Entity Structure HERE
Comments (2)
Hi Scott, You would make the offer to the trustees of the trust. The likelihood of selling all depends on if they are motivated sellers or not. If they are motivated to sell, they will consider the offer but if they are not motivated, then they may not consider it.
, over 13 years ago
I'm investigating a burned out house in my neighborhood that has been sitting vacant and rotting to the ground for almost two years now. After checking public records I've found the house is held in a trust with two trustees! the property has had thousands of dollars in nussance fines issued and paid by the trustees along with property taxes of $4,800 anually! { My question } How does one go about making an offer on an abandoned property held in a trust, Is there any likely hood that if contacted the trustees would or even could sell the property so it can be demolished and re-developed? Thank you
Scott Miller, over 13 years ago