Real Estate Investment Articles

What is a Land Trust?

By: Hughes Brothers

A trust is nothing more than a few pieces of paper. With this legal document (known as a TRUST AGREEMENT and a Deed in Trust) you transfer the ownership of property to a TRUSTEE. A trustee can be a friend, business associate or institution (i.e. a bank, title company or law firm). The trustee technically "owns" the property and is shown as the owner of record at the county seat.

However, the trustee cannot do anything with the property unless directed to do so by the BENEFICIARY. The beneficiary of the trust agreement is usually the person who put the property into trust to begin with. The identity of the beneficial owner is held privately, protected from the public eye in the Trust Agreement which is not a public record. The beneficiary retains the right to full management and control of the property. The trustee executes deeds, mortgages or otherwise deals with the property at the written direction of the beneficiary. The beneficiary collects rents (if the trust holds title to rental property), improves and operates the property and exercises all rights of ownership other than holding or dealing with the legal title. When the beneficiary dies, the trust does not cease (or die with him/her). The trust continues on for the benefit of the SUCCESSOR BENEFICIARY. As a result of this almost continuous life, a trust by-passes probate upon the beneficiary's death. Thus giving privacy to the transfer of assets after death. Trusts can hold real estate, notes, options, mortgages, or leases.

The cornerstone of asset protection is financial privacy. Financial privacy begins with not making public the extent of your holdings. Trusts provide privacy by taking ownership of assets out of your name (or preventing them from going into your name to begin with) and keeping you out of the "public eye." If someone does get a judgment against you, they cannot levy against your trust.

Land Trusts are wonderful asset protection tools IF THEY ARE USED PROPERLY IN CONJUNCTION WITH OTHER ENTITIES. If you want to learn more about Land Trusts, please check out our Land Trusts Made Simple Basic Home Study Course at:

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