Benefits of Land Trusts | Think Realty
Separating fact from fiction on this centuries-old tool
Unfortunately for real estate investors, separating fact from fiction when it comes to land trusts can be difficult. A land trust is a simple tool that has been around since King Henry VIII ruled England. Its purpose then, to hide ownership of land (so a commoner would not have to serve in the military or lose the benefits of his land upon death), is the same today. There are several benefits to land trusts, the main one being privacy.
A land trust confers anonymity for the investor, but only in the following situations:
- Title is taken in the name of the trust;
- Someone other than the beneficiary is named as a trustee; and
- The beneficiary is not a party to the mortgage.
The last two points are…