Land Trust
Candlefocus EditorWhen a land trust is formed, the owner transfers the deed of the property to the trust. The trust is a legal entity that holds the title to the property on behalf of the landowner. The owner will remain the beneficiary of the land trust and retain legal authority over its contents. The land trust is usually managed by a trustee such as a lawyer, a family member, or a trusted friend.
In an Illinois Land Trust, the beneficiary remains anonymous and the property will stay out of probate in the event of the owner's death. This type of trust also helps protect the landowner from liability associated with the property. The owner can also withdraw the property from the trust at any time. However, the owner will be disqualified from secondary market loans and will lose redemption rights if the property is removed from the trust.
The other type of land trust is a conservation land trust. These trusts are used to manage undeveloped land in order to conserve natural resources, historical sites, and public recreation areas. Conservation land trusts are often run by nonprofit organizations, who will use the funds generated from various activities such as recreational activities, agricultural practices, and research activities to manage the land.
In conclusion, land trusts offer a variety of benefits and can be used by real estate investors, homeowners, and estate planners. The most common types of land trusts are Illinois land trusts and conservation land trusts. Before forming a land trust, it is important to consider the risks and benefits and make sure the trust is created correctly.