Why use a land trust?

The major advantages of land trusts for individuals are as follows:

1. Sales price of the property can be kept off the public records.

2. Property taxes are lower if the purchase price is kept private.

3. Judgments or liens against an individuals name are not a lien against their land trust property.

4. Partners can more easily continue a project if one dies or is divorced.

5. Interests can be transferred quickly without recording a deed.

6. Negotiating a purchase or sale can be easier.

7. Liability on financing can be limited to the assets of the trust.

Land trusts have been actively used in Illinois for well over a hundred years and in recent decades have begun to be used in other states. The creation of land trusts is not a recorded document, however the declaration of a trust is through a “deed to trustee”. Many believe that the trust document is to be filed as a public document, however, if this is done you will lose your asset protection as your name will appear and you will be vulnerable to lawsuits as your assets will be known to the general public.

This is a wonderful tool, however, make sure you check your states regulations for land trusts and seek out the advice of an attorney.