Land Trust
A land trust holds real property in trust so the trustee's name appears on public records while the beneficiary — the real owner — stays private. The beneficial interest is treated as personal property, transferable by assignment without recording a deed.
What is a land trust?
A land trust is a legal arrangement in which a trustee holds legal title to real property for the benefit of a beneficiary. The trustee's name appears on public records — deeds, tax rolls, and county filings — while the beneficiary's identity remains private. The beneficial interest (the real economic ownership) is classified as personal property, not real property, which means it can be transferred by a simple written assignment without recording a deed.
This structure separates legal title (held by the trustee, and visible to anyone who searches public records) from beneficial ownership (held by the beneficiary, and documented only in the private trust agreement). The trustee has no independent authority — they act only on the written direction of the beneficiary.
Key structure
- Trustee — holds legal title, appears on public records, acts only on the beneficiary's written direction
- Beneficiary — holds the beneficial interest (the real ownership), name stays private, controls all decisions
- Beneficial interest — classified as personal property, transferable by assignment without recording a deed
- Trust agreement — the private, unrecorded contract between trustee and beneficiary
How it works
A land trust involves two separate documents:
- The Land Trust Agreement — the private, unrecorded contract between the trustee and the beneficiary. This document is never filed in public records. It establishes the trustee's duties, the beneficiary's power of direction, the trust term, and succession.This is what FreeTrustDocs generates.
- The Deed to Trustee — the recorded deed that transfers legal title from the current owner to the trustee. This deed is recorded in the county where the property is located and is typically prepared by a title company or attorney.This tool does NOT generate the deed.
Once the trust agreement is signed and the deed is recorded, the trustee holds legal title and the beneficiary retains full control through the power of direction. The beneficiary can sell, lease, mortgage, or convey the property by directing the trustee in writing — without the beneficiary's name ever appearing in public records.
State recognition
Land trusts are recognized only in certain states. The most common are Illinois (the original land trust state, established by common law) and Florida (which has a statutory framework under the Florida Land Trust Act, §689.071). Several other states also recognize land trusts by statute or common law.
| State | Status | Notes |
|---|---|---|
| Illinois | Recognized | Original land trust state — common law, no statute |
| Florida | Recognized | Florida Land Trust Act §689.071 |
| Indiana | Recognized | Statutory recognition |
| North Dakota | Recognized | Statutory recognition |
| Virginia | Recognized | Statutory recognition |
| Ohio | Recognized | Common law recognition |
| Georgia | Recognized | Statutory recognition |
| California | Not recognized | Consider an LLC for privacy instead |
| Texas | Not recognized | Consider an LLC for privacy instead |
| New York | Not recognized | Consider an LLC for privacy instead |
If your state is not listed above, consult a licensed attorney about alternatives — an LLC or other entity may provide similar privacy benefits in states that do not recognize land trusts.
Use cases
- Privacy of ownership — the beneficiary's name does not appear on public records; only the trustee's does
- Probate avoidance — the beneficial interest passes to the successor beneficiary by the terms of the trust, without a court proceeding
- Ease of transfer — the beneficial interest is personal property and can be assigned in writing without recording a new deed
- Judgment creditor deterrence — a judgment against the beneficiary does not automatically attach to the property; creditors must discover and pursue the beneficial interest
- Multiple property isolation — each property can be held in a separate land trust, isolating liability across properties
Related documents
Frequently Asked Questions
What is a land trust?
A land trust is a legal arrangement in which a trustee holds legal title to real property for the benefit of a beneficiary. The trustee's name appears on public records while the beneficiary's identity remains private. The beneficial interest is classified as personal property, transferable by written assignment without recording a deed.
Which states recognize land trusts?
Land trusts are recognized in Illinois (the original land trust state by common law), Florida (Florida Land Trust Act §689.071), Indiana, North Dakota, Virginia, Ohio, and Georgia. Several other states may recognize them by common law. States like California, Texas, and New York do not recognize land trusts — consider an LLC for privacy instead.
Does a land trust provide asset protection?
A land trust provides privacy, not asset protection. A judgment against the beneficiary does not automatically attach to the property, but creditors can still discover and pursue the beneficial interest. If asset protection is your primary goal, you should consult an attorney about structures like LLCs or irrevocable trusts that offer stronger protections.
Can I use a land trust for my primary residence?
Yes, you can place your primary residence in a land trust if your state recognizes land trusts. The trustee's name appears on public records instead of yours, providing privacy. However, if your property is mortgaged, review your loan documents for due-on-sale clause restrictions before transferring to a trust, and consult an attorney about homestead exemption implications.
What's the difference between a land trust and an LLC?
A land trust provides privacy by keeping the beneficiary's name off public records and allows the beneficial interest to transfer by assignment without recording a deed. An LLC provides liability protection that a land trust does not. An LLC's members appear in state filings, while a land trust's beneficiary stays private. Many property owners use both — an LLC as the beneficiary of a land trust — for combined privacy and liability protection.