If it's fine with you for the entire world to know that you own your home and perhaps other properties, the option under discussion in this article will not benefit you. However, if you would like to keep your ownership away from the eyes of attorneys, bill collectors, tenants, and other similar types, then having your property in a land trust should be a clear and beneficial choice.
A trustee can only act under written direction of the beneficiary who can instruct the trustee to buy, sell, exchange, or mortgage the property. In other words, the sole function of the trustee is to hold title and sign documents, to transfer title to another, and to lease or finance the property all under the direction of the beneficiary.
- personal property has different probate requirements than real property;
- the beneficiary is protected against liens and other laws regarding real estate;
- a land trust allows the beneficiary to sell or give away portions of his interest without subdividing the property or deeding a partial interest in the real estate;
- personal property transfers are generally not recorded in the public records, the trustee is simply notified of any transfer of beneficial interest; and, the beneficiary of a land trust could even be another trust, perhaps a living trust.
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