How does a Florida land trust work?
A Florida land trust is a private agreement among several people to operate, manage, and hold legal title to Florida real property. The beneficiary controls the use and sale of the property. The beneficiary receives all tax benefits and property appreciation.
What is the purpose of a Florida land trust?
The Florida Land Trust is an estate planning and asset protection tool that is used by U.S. citizens and foreign nationals for purposes of owning, transferring and managing real property. Florida Land Trusts are specifically provided for in Florida Statute Section 689.071.
How much does it cost to set up a land trust in Florida?
The initial cost to set up a land trust in Florida is normally a set-up fee, which can range from $250 to $500. In many cases, there are attorney fees associated with the administration of the land trust, which includes tax forms, bills, and other similar expenses.
What are the benefits of a land trust?
A land trust offers many advantages. Privacy of ownership and the possible avoidance of a probate are its two main advantages. In addition, a land trust can help protect against judgments and liens, prevent land partition, facilitate estate planning, and ease real estate title transfer.
Can a trust hold title to real property in Florida?
Ownership in Trust A trust is a legal structure under which an appointed trustee holds title to and manages assets for the benefit of one or more beneficiaries. Real estate needs a new deed granting the property to the trust, and financial accounts must be transferred into the name of the trust.
Is a land trust better than an LLC?
Although a land trust is for privacy and asset protection, a land trust does not receive the benefits that an LLC or a business does. However, if someone falls on your property and gets hurt, the beneficiary will be held responsible.
How much does it cost to set up a land trust?
A Full Service Standard Land Trust setup is $500. This includes up to an hour of time with us on the phone or in our office, and with us calling title companies or lenders to smooth out the transaction when necessary.
What are the disadvantages of a land trust?
Disadvantages: NO ASSET PROTECTION:While an individual who has a Beneficial Interest in a Land Trust is considered to own personal property and is not subject to the Liens of Creditors (at least in Florida), such Beneficial Owner is still subject to Civil Judgements and IRS Federal and Local Tax Liens.
Does spouse need to be on title in Florida?
The husband and the wife must receive title in the same deed or other instrument; The husband and the wife must receive the same interest; and. The husband and the wife must have equal right to control or possess the property.
Does a Florida land trust need to be notarized?
The beneficial interest(s) in the Florida Land Trust is personal property and not real property. Their beneficial interest in the trust, as personal property, can be easily assigned to another party without the need to prepare, sign, notarize and record a Warranty Deed.
Can an LLC own a land trust?
You can actually form a “land trust” in any state. All states will allow you to form a trust that owns a piece of real estate. On the other hand, a piece of real estate held in an LLC will give the property asset protection from the creditors of the member(s) who own the LLC and put the property into the LLC.
What you should know about Florida land trusts?
Components of Florida Land Trust. There are two main components of Land Trusts in the State of Florida: The Deed in…
Why use a Florida Land Trust?
The most common use is to keep your ownership interest of Florida real estate or other personal property confidential and private because the Florida Land Trust keeps your name off the public record.
What are the benefits of a Florida Land Trust?
There are three key benefits to a Florida Land Trust, including: Avoidance of probate. When real estate is held in a trust, such as a Land Trust, it passes through a trustee to the beneficiaries outside of the probate process. Since the Land Trust Agreement provides for the manner in which ownership is passed upon death, probate is unnecessary.
What are the disadvantages of land trust?
This means that an investor doesn’t have total control over the trust. Another disadvantage is that, while an investor could purchase property in his or her own name and then convey the property to the land trust, that transfer defeats the privacy protection.