Land Trust: Definition and Benefits

Transactions related to buying, selling, and managing a real estate can be a complicated matter. That is especially true for most real estate investors who work full-time jobs or busy managing other investments apart from their landholdings. 

In most cases, real estate investors and landowners who do not have enough time to settle these kinds of business transactions come up with a relatively simple solution known as a land trust.

What is a land trust? It is a private and legal agreement, wherein the trustee is given the right to the title of a particular property. It is the most effective and convenient way of transferring the rights and benefits of land ownership. And this is with the consent of interested parties. 

A land trust holds all real estate-related assets such as physical properties, mortgage notes, and air rights. A land trust also makes the property owner as the beneficiary. That enables the property owner to direct the property still. 

Is Land Trust Irrevocable?

Land trusts are usually considered revocable. Meaning, the trustor or grantor may change, amend, or entirely terminate the beneficiaries. The property owner can make modifications at any time. It includes the right to sell, develop, or rent the property under the land trust agreement. The beneficiaries also have the right to remove an unreliable trustee. 

The trustee, on the other hand, holds the fiduciary title. Therefore, they will not incur any personal liability as to the title holder. He will not lose the asset or property to his creditors. 

What is a Land Trust and Its Benefits?

The following are the advantages when you enter into a land trust agreement. One of the main benefits is being an anonymous titleholder. 

    • Ownership in Privacy – The property under the land trust agreement is listed as the trustee’s name without the public record. The identity of the property owner of a particular real estate is discreet to a third party. But with a court order or subpoena, it is an exception. It is also a way to hide the full net worth away from the public eye.


  • Uncomplicated transferability – The property owner of a land trust has the possibility to be changed even without appearing of the alterations in the public records.
  • Avoidance of probate – Probate establishes the validity of a will. However, a land trust lets you designate the ownership in succession. It can be done at any time you want. Thus, probate is avoided and other proceedings related to the asset or property that is costly and time-consuming.


  • Multiple-ownership is facilitated – It is a structure of a land trust with more than one owner provided in an easy and legal division.

A land trust is a title-holding legal instrument that can eliminate many complexities encountered in real estate property management. It is always better to seek the advice of your professional lawyer if you want to enter a land trust agreement. 

A land trust is not always the answer to protecting your assets. But it is a significant factor of an asset protection plan. Ideally, it is best to use a land trust for every property. This way, you will be able to reap the benefits in each one of them.

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