Legal structure
Land Trust
An arrangement in which a trustee holds legal title to real property while the beneficiary retains control and benefits.
Typical purpose
Privacy of ownership and simplified transfer of beneficial interests in real estate.
How it operates
The beneficiary directs the trustee; title records show the trustee.
Who might use it
Real estate investors and property owners in recognizing states.
Assets commonly involved
- ◆Real property
Potential advantages
- ◆Ownership privacy
- ◆Easier interest transfer
Legal and tax limitations
- ◆Not recognized uniformly
- ◆Limited liability protection
- ◆Lender due-on-sale considerations
Establishment & administration
- ◆Trust agreement
- ◆Deed to trustee
- ◆Local recording
Common mistakes
- ◆Assuming liability protection
- ◆Ignoring mortgage terms
Questions to ask a professional
- ◆Which state's law should govern this arrangement, and why?
- ◆Who should serve as trustee and successor trustee?
- ◆How will the trust be taxed at the federal and state level?
- ◆What assets must be retitled, and who handles the transfers?
- ◆What ongoing records, filings, and reports will be required?
Educational information only. Trust law varies by state; consult qualified legal, tax, and financial professionals before acting.
Next step
Move from understanding to a properly reviewed plan.
Discuss a Land Trust With TangierEducational information only. Not legal, tax, or investment advice.