10 Tips for Establishing a Land Trust

The first tip for establishing a land trust is to do your homework. What is a land trust? A land trust is an agreement whereby a person, bank, or other entity, holds the deed to your land while you, as the beneficiary, still hold all of the rights and privileges belonging to the land owner. You must understand who can benefit from a land trust. In essence anyone can benefit from having a land trust. A land trust still gives you complete control of your land but with certain benefits that come from having your name removed from public records and replaced with a trustee. However, many corporations and non-profit groups are commonly beneficiaries in many land trusts. This way they can purchase property in a private way or hold certain rights to properties that allow them to develop property in the way that they see fit.

You might wonder who technically owns the trust. You still own the property. Being the beneficiary means that you are the one who can benefit from the trust. The trustee is only holding the land for you in trust and must manage that land in the way that is consistent with the trust agreement signed by both the beneficiary and the trustee.

What are the benefits of establishing a land trust? There are many benefits that will be described. Some of these benefits include privacy, avoiding probate, and protection from law suites.

When a person dies, there are so many things to worry about. No one wants to worry about going through probate. This can be avoided by establishing a land trust. In your trust agreement you can state specific instructions for the management of your land in the event of your death. This means you can transfer the land to the person of your choice without them going through probate court.

Privacy is another good reason to establish a land trust. If you want to own property or properties without anyone knowing who is purchasing the land, you can do so through a land trust. The trustee is listed as the purchaser so that you are not listed in the public records.

This privacy can protect you from law suits. If a person wins a judgment against you they can put a lien against your property. However, they can't do this if you are not the one listed on the property. They really can't do this if they don't even know you own the property.

Establishing a land trust is not too complicated. In order to establish a land trust you must find a trustee. You will need a trust agreement that establishes you as the beneficiary to the trust. This is not filed with the court. Than you need to file a quit claim deed in trust where the trustee is named as the property owner. This is filed with the court.

Who are the trustees? Anyone can be a trustee. However, many times this is done by a financial institution or a law firm. This is usually done for a nominal fee similar to other types of trusts governed by these institutions.

Do you need an attorney? As with anything legal, it is very beneficial to have an attorney. However, you can find standard trust agreements and quit claim deeds on line. Therefore, it is possible to do this yourself. You may also find that your trustee should be very knowledgeable as well.