Lands trusts are living trusts that give the beneficiary full or partial legal ownership over a property. The person who establishes the trust is the grantor and the owner of the property. A trustee manages the trust itself.
This estate planning strategy allows individuals and business owners to protect their property. The entire estate planning process can be difficult, so it is always smart to consult an experienced attorney. They can ensure that your land trust is legally binding and can guide you into making the best informed decision for your unique circumstance.
What Are the Advantages of a Land Trust in Illinois?
Land trusts are usually established by real estate investors and estate planning property owners because of their advantages. Here are a few of those benefits:
Allows property owners to separate investment real estate and personal finances
Allows anonymous property ownership
Offers some liability protections
May make the probate process easier
What Are the Disadvantages of a Land Trust in Illinois?
Although land trusts have their benefits, there are a few issues you need to consider also. Here a few disadvantages that you should take a look at:
Properties in a land trust are typically ineligible for loans on the secondary market
Owners of properties in a land trust lose the right to reclaim property before or after foreclosure
Privacy is limited
The real property owner, and not just the trustee, may be found liable
Are There Different Types of Land Trusts?
“Title-holding” and “conservation” are the two types of land trusts. They have a completely different function, and they differ based on when they are used. A title-holding land trust lets property owners maintain all property rights and control over the actions of the land trust, but with the benefit of doing so anonymously.
Conservation land trusts require that the owner relinquish some rights. These trusts work to protect resources, historical landmarks, cultural places, and wildlife against developments that could disturb them or cause pollution. The property’s original owner places land into a conservation trust and “donates” their development rights to the trust, making it so that others cannot develop on the property, even if it is sold.
Contact a Chatham, IL Estate Planning Attorney
Land trusts are a sensitive and intricate legal arrangement that call for extensive knowledge and considerable thought. You do not have to go through this complicated process alone. Consult a Roseland, IL estate planning attorney to secure your real estate investments. At [[title]], we are prepared to answer all of your questions and provide you with the knowledge necessary for you to make an educated decision regarding your real estate needs. Please call us at [[phone]] for help.