What is a

Realty Trust?

A “Realty Trust” (also referred to as a “Land Trust”) is a short form trust agreement to hold only real property; generally the sole beneficiary of the trust is a “pour-over” to the clients’ primary living trust.

 

 

What does it do?

A Realty / Land Trust is a real property title-holding vehicle; a trust agreement under which the Trustee directs in all matters affecting title to the trust property.

 

This type of trust agreement is not recorded, and the deed conveying the property to the trust does not identify the parties involved. The ownership of the property simply assigns the beneficial interest under the trust.

 

The trust agreement is usually established for a specific time period, at the end of which the agreement either expires or is extended. The agreement also names a person or entity to receive the interest of a beneficiary who dies during the term of the trust.

 

 

Uses and Benefits of the Land Trust

The uses and benefits of the Land Trust are varied. With a Land Trust, an individual or individuals can have privacy of ownership and nonresident ownership, avoid probate, limit exposure to judgments and liens, avoid marital interest in title, insulate from the hazards of individual ownership, transfer beneficial interests; use beneficial interests as collateral, prevent partition of the land, protect in the acquisition, development, and operation of apartment developments, condominium apartments, or cooperatives, facilitate estate planning, provide partnership, corporation, and agricultural land-use protection.