Understanding: Land Trusts
What if I already have a trust?
A Land Trust is different from a traditional trust because it does not address the client’s other assets and is not a comprehensive estate planning vehicle.
However, if the “Sarah Smith Family Trust” owns a property, that is not necessarily complete privacy protection that is available with a Land Trust. A Land Trust can ensure that the home avoids the probate process and are left to the appropriate designees upon the death of the primary beneficiary. Plus, it is much simpler to change the beneficiaries of a Land Trust than to deed the property to desired heirs.
The Land Trust is not a replacement for traditional estate planning but can take care of an individual’s or family’s real estate for estate planning purposes.
Do I need a different Land Trust for every property that I own?
No - you can hold all of the properties you own under one Land Trust. However, note that if you are required to assign the beneficial interest to a lender to secure a loan, that could potentially impact all of your properties held in that Trust.
There may be reasons to hold properties in separate Land Trusts, so speak with us about the best structure for your situation.