Land Trust Terminology

A. A land trust requires two essential instruments, the deeds that convey property into and out of the trust and the land trust agreement. It is important, however, to understand some of the terminology that relates to land trusts before discussing these documents.

B. Terminology.

1. Land Trust. In Florida, a land trust is created when the requirements of Florida Statutes 689.071 are met.

2. Trust Agreement. The Trust Agreement is the agreement entered into between the trustee and the beneficiary which establishes the trust. Attached hereto as Exhibit A is a copy of a form of trust agreement.

3. The Trustee. The Trustee is the party designated in the trust agreement to hold legal and equitable title to the land trust property.

4. Beneficiary. The Beneficiary is the party designated in the trust agreement as having the power to direct the trustee with regard to the trust property, the control of the management, operation, rental and sale of the trust property and the right to the earnings, avails and proceeds of the trust property.

5. Power of Direction. The Power of Direction is the right to control the trustee's disposition of title to the trust power and the execution of trust documents affecting the trust property. In the absence of a provision in the land trust agreement to the contrary, the power of direction is allocated in accordance with the percentage of individual ownership. Section 689.071.8(f), F.S.

6. Deed in Trust. The Deed in Trust is the instrument which conveys title to the real property into the land trust. A form of Deed of Trust is attached hereto as Exhibit B.

7. Trustee's Deed. An instrument by which a land trustee conveys title to the trust real property to another party is a Trustee's Deed. A trustee's deed form is attached hereto as Exhibit C.