Benefits that a real-estate owner can reap by owning property through land trust
A land trust 2104 is a private agreement where the title of the property is held by another person for the benefit of the beneficiary, i.e., the actual owner of the property. There are ample templates for LT 2104 found in the internet. However, to avoid legal jargons, you can hire an attorney and get this agreement prepared by clearly embedding all the terms and conditions. Generally, the trust is created by the actual title holder of the property, but he/she remains as the beneficiary of it throughout their lifetime. Though, the trustee is the owner of the property on papers, but the actual owner, i.e. the beneficiary will guide the trustee on the activities to be done in the trust. In fact, the beneficiary possesses all the rights to instruct the trustee and the income that is earned on the trustee is transferred and enjoyed by the beneficiary. Generally, the relationship between the trustee and the beneficiary will be written on paper at the time of starting the trust so that they do not face any kind of disputes in the near future. Most importantly, the trustee has no rights to take any decision on the trust, he/she has to work with the directions given by the beneficiary.
Ideally, the LT-2104 can be cancelled, changed or terminated by the beneficiary. Here are a few benefits that a real-estate owner can reap by owning a property through a land trust
- Maintain privacy about their ownership: Generally, under this land trust agreement, the owner of the property is kept off the public records. The owner is only unveiled, if the trust receives any court orders
- Easy to transfer the ownership: The owner (beneficiary) of the property can be changed without actually changing their name in the public records.
- Get tax exemptions: The owner gets tax exemptions for their property under homeowner or senior citizen category.
- Declaration of Trust Template