32 Reasons to Use a Land Trust

1.    Avoids property being probated (out of court transfer upon death of beneficiary)

2.    Ease of Transferability

3.    Judgments do not attach to the beneficiary

4.    No Partition (avoids spouse’s “forced share” sale buyout upon divorce)

5.    Easier management with multiple owners (multiple owner do not have to sign docs)

6.    No costs upon transferring beneficiary

7.    No registered agent needed

8.    Legal and Equitable property interest in trustee’s name (never be in the “chain of title”)

9.    Income and Expense conduit, not a business with tax consequences

10. Trustee has no personal liability

11. No annual fees like other entities, if trustee is an individual or friend

12. Estate planning benefits – automatic successor beneficiaries

13. Less expense with grantor creating the trust entity

14. Avoids the due on sale clause (lenders never know what happened)

15. Privacy of ownership (no recordation of the Trust Agreement) Helps avoid Identity Theft of your name

16. Keep sales price private

17. Able to fracture interests of multiple owners without being “partners”

18. Ease of linkage to other asset protection entities

19. Non-judicial repossessions of real estate sold on installment contract

20. 1099 not required for transfers (personal property not subject to real estate regulations)

21. Ease of operating across state lines

22. Ability to insert poison pills

23. Lots of case law to support land trust administration

24. Many attorneys do not study this section of the law – not profitable for them (yields a competitive advantage)

25. No recordation of the Trust Agreement

26. No tax return to file (pass through entity)

27. To avoid “seasoning” problems (secondary market rules of ownership)

28. To save title insurance premiums (Trustee-insured-remains the same)

29. Good negotiating technique in the sale or purchase of property (Disney World used land trusts to acquire its property prior to construction…to avoid price escalation)

30. To provide non-recourse financing

31. Lowering of real estate taxes (prevents re-assessment)

32. Avoids state regulations that apply to corporations and LLC’s