Land Trust Agreement,
What is a land trust agreement
A land trust agreement is a legal document where the trustee is the one that holds the legal title and this is for all the property which is held in the trust and the beneficiary of the trust is the LLC. This means that the beneficiaries get to use the property as well as to use whatever income is generated by the property. The trustee too is able to only act when instructions are given by the beneficiaries to him or her and that too in writing. In this way the beneficiaries have complete control.
A land trust agreement is needed so that the assets are protected. This is used especially when the owner is afraid that there may be fraud or there are chances of mismanagement. It also is a safeguard incase there is a life changing event that occurs. It helps so that the entire assets are not in the public eye especially after the death of the owner. It also helps so that the tax burden is reduced of the beneficiaries.
Land trust agreements are drawn up during the lifetime of the owner and the owner lists all the terms and conditions in the agreement including the details, rights and duties of the trustee as well as the beneficiaries. This is especially helpful when the beneficiary is a minor or if the beneficiary has special needs.
In this, even the details of resignation of the trustee and the successorship are all detailed so there is no hitch whatsoever.
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