What is a Florida Land Trust, and Why You May Need One?

17 October 2024by Irina Prell0

If you own property in Florida or are considering buying some, you might have heard about something called a “Florida Land Trust.” But what exactly is a land trust, and why would you want to use one? This article will explain what a Florida Land Trust is, its benefits, and the requirements for setting one up.

What is a Florida Land Trust?

A Florida Land Trust is a private agreement that allows an individual or entity to hold title to real estate while maintaining privacy and flexibility. Essentially, it’s a legal arrangement in which the title to a property is held by a trustee on behalf of the property’s true owner, known as the beneficiary. Unlike other types of trusts, a Florida Land Trust specifically holds real estate and allows the beneficiary to control the property without being named on the public record.
Land trusts have been around for decades and are particularly popular in Florida for those who value privacy and control over their real estate holdings.

What Are the Benefits of a Florida Land Trust?

There are several reasons why someone might choose to establish a Florida Land Trust:

  • Privacy of Ownership: In Florida, property ownership is a matter of public record. By placing property in a land trust, the name of the property owner (the beneficiary) does not appear in the public records, which helps maintain privacy.
  • Avoiding Probate: A Florida Land Trust can help bypass probate. When the beneficiary passes away, the interest in the trust can be easily transferred to heirs or other beneficiaries without going through the time-consuming probate process.
  • Flexibility in Ownership: The beneficiary retains full control of the property, including the right to sell, lease, mortgage, or improve the property. This flexibility makes it easier to manage assets compared to other forms of property ownership.
  • Ease of Transfer: Interests in a land trust can be easily transferred without changing the public record title. This makes selling or transferring property easier, as only the beneficial interest changes hands.
  • Protection from Liens: In certain cases, if the beneficiary has personal liabilities, a land trust may provide some protection against liens. This is because the title to the property is held by the trustee and not directly in the name of the beneficiary.

Who Can Create a Florida Land Trust?

A Florida Land Trust can be created by any individual or entity wishing to hold real estate. This could be a property owner, a real estate investor, or a business looking to keep ownership private or simplify the transfer of property. Both Florida residents and non-residents can create a land trust for property located within the state.

What Documents Are Required to Create a Florida Land Trust?

To create a Florida Land Trust, the following documents are typically required:

  • Trust Agreement: The trust agreement outlines the terms of the trust, including the rights and responsibilities of the trustee and the beneficiary. It will specify how the property should be managed and how benefits from the property should be handled.
  • Deed to Trustee: The property must be transferred to the trustee by executing a deed that conveys the title from the original owner to the trustee of the land trust. This document is recorded in the public records to show that the trustee holds the title.
    The trust agreement itself is not recorded in public records, which helps preserve the privacy of the beneficiary’s identity.

Who Owns the Trust and Who Owns the Property?

  • Trustee: The trustee holds legal title to the property. The trustee is responsible for managing the property as directed by the trust agreement. Typically, a third party, such as a trusted individual, company, or financial institution, acts as the trustee.
  • Beneficiary: The beneficiary, on the other hand, is the true owner of the property. The beneficiary has all the rights to manage, sell, or mortgage the property, even though their name is not on the public title. This separation of title ownership (trustee) and beneficial ownership (beneficiary) is what makes land trusts attractive for privacy and control purposes.

Why You May Need a Florida Land Trust

A Florida Land Trust can be a powerful tool if you value privacy and want an easier way to manage real estate holdings. Investors frequently use land trusts to keep ownership details confidential, simplify estate planning, and reduce the hassles of transferring properties. By using a land trust, you also avoid the need to create more complicated legal structures or involve multiple owners directly in the public record, which can complicate matters and invite disputes.
Whether you’re a real estate investor seeking anonymity, an individual looking for a simplified estate plan, or someone who wishes to protect their property from potential liabilities, a Florida Land Trust could be an excellent solution for your needs.

Call Spearing Law for Help with Your Florida Land Trust

Setting up a Florida Land Trust requires a clear understanding of the legal implications and careful preparation of documents. If you’re considering creating a land trust for your property, it’s essential to work with an experienced attorney who can guide you through the process and ensure that everything is done correctly.

At Spearing Law, we have the expertise you need to create a Florida Land Trust that fits your goals. We understand the complexities of real estate law and are ready to help you protect your property while maintaining privacy and control.

Contact Spearing Law today to schedule a consultation, and let us help you create a Florida Land Trust that works for you!

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