Real estate — including your family home — is the most valuable asset in many investment or retirement portfolios. Rather than own real estate in their own names, a number of individuals transfer ownership of property to a land trust. A land trust places title to the property in the name of one or more trustees, while allowing the beneficiary of the trust — generally the one who initiated the trust — to retain control over management of the property.
Land trusts date back to the mid-1800s. Although they are used in several states, they originated in Illinois, which is why they are often referred to as "Illinois Land Trusts" even outside of the state.
There are numerous benefits associated with using a land trust, including privacy of ownership, efficient succession of ownership upon death, and protection from liens or judgments. At Hubeny & Zaba, LLC, in Westmont, our experienced real estate attorneys provide comprehensive legal guidance regarding the establishment and effective use of land trusts.
The owner of a land trust (the beneficiary) designates a corporate fiduciary to hold title to the property. The beneficiary of a land trust can be an individual, a group of individuals (such as husband and wife) or a corporate entity. The beneficiary spells out who has authority to manage and control the property, as well as whether the property can be sold and under what conditions. It also stipulates who becomes the owner of the property upon the beneficiary's death. Often, this may be more than one person.
There are many benefits to placing real property into a land trust, including:
The experienced real estate lawyers at Hubeny & Zaba can answer your questions about land trusts, explain further benefits, and help determine if establishing one is a good idea for you. Call or use our online contact form to schedule a free consultation.