Land Trust Agreement

Land Trusts as Pass Through Entities This is because a revocable land trust is seen as a pass through entity by the IRS. Any income on the land trusts is treated as personal income and thus reported only on a personal tax return. As a pass through entity, a land trust doesn't lead to the grantor being taxed twice.

A trust is not itself a legal entity, but rather the trustee, as trustee of the trust is the legal entity.

Most trusts are named after the Trust Creators and also include the date the trust was created. Examples are John and Jane Smith Revocable Trust dated 1/1/20; or Smith Family Trust dated 1/1/20; or John W. Smith and Jane A. Smith Revocable Family Trust dated 1/1/20.

A land trust represents a type of revocable trust designed to hold real estate. While most trusts are used extensively in estate planning, land trusts have two different purposes. One purpose is to keep the identity of a real estate owner out of the public records by holding the land in a trustee's name.

Before you start with the documents, first you need to decide the name you are going to be using for your properties. Once you find a trusted friend or family member, you then see a land trust attorney who will draw up a contract that states what is happening and the rights of both parties, you and your land trust.

Real estate is the only asset of a land trust. As in all trusts, the property is conveyed to a trustee, and the beneficial interest belongs to the beneficiary.

A trust is an arrangement where property is held 'in trust' (by a trustee) for the benefb01t of others (the benefb01ciaries). There are two ways to hold property: in your own name or in a trust (which means the property is held 'in trust' and you control the trust).

Trust property refers to assets that have been placed into a fiduciary relationship between a trustor and trustee for a designated beneficiary. Trust property may include any type of asset, including cash, securities, real estate, or life insurance policies.