Summary of Land Trust Benefits

The trustee holds full legal and equitable title to the real estate but the complete management of the property plus full power to direct the trustee with respect to the title is in the beneficiaries. The land trust is set-up through the use of two instruments -- a deed in trust, whereby real estate is conveyed to the trustee and a trust agreement under which the trustee acts. Land trusts have been found to have several advantages:

1. Interests in land trusts cannot be partitioned, and transferring beneficial interests is relatively easy.

2. Interests of beneficiaries cannot be disclosed without order of court.

3. Judgments against the beneficiaries do not affect legal title.

4. The beneficial interest in the land trust is personal property. Since it is personal property non-residents of Florida can avoid ancillary administration.

5. The death of a beneficiary does not terminate the trust, and testamentary dispositions can be made in the trust agreement.