Land Trust

In depth

A land trust is a revocable trust where a trustee holds title to real estate for a named beneficiary. The beneficiary controls operations, receives income, and bears expenses. Misconception: a land trust is not the same as a deed of trust; the deed of trust is a security instrument, while a land trust is an ownership vehicle. Practically, land trusts are popular in Illinois, Florida, and Virginia for their simplicity and privacy. Beneficial interests are personal property, simplifying transfers and avoiding probate. In seller-financed deals, sellers sometimes deed property into a land trust and sell beneficial interests to bypass due-on-sale concerns, though this is legally aggressive. Always work with experienced counsel on land trust structures.