When it comes to estate planning, most people think about wills, living trusts, and powers of attorney. But there’s another lesser-known tool that can offer unique benefits: the land trust. If you own real estate—whether a single property or a portfolio—it’s worth considering whether a land trust has a place in your estate plan.
What Is a Land Trust?
A land trust is a legal agreement in which a trustee holds title to a piece of real estate for the benefit of another person, known as the beneficiary. Unlike other types of trusts, a land trust is specifically designed to manage real estate and related interests.
There are two common types of land trusts:
- Title-Holding Land Trusts: These are primarily used to hold title to real estate while allowing the beneficiary to maintain control over the property and its income.
- Conservation Land Trusts: These are typically nonprofit organizations that acquire or manage land for conservation purposes. In estate planning, however, we’re usually referring to the title-holding version.
Key Features of a Land Trust
- Privacy: Because the title is held in the name of the trust (not your personal name), it offers anonymity. Public records will show the trustee, not the property owner.
- Avoids Probate: Like other types of trusts, a land trust allows for a smoother transfer of real estate after death, bypassing the often lengthy and costly probate process.
- Control and Flexibility: The beneficiary retains the ability to manage, rent, refinance, or sell the property, often without involving the trustee.
- Asset Protection: While not bulletproof, land trusts can offer a layer of protection from lawsuits or creditors by separating legal ownership from beneficial ownership.
- Ease of Transfer: Interests in a land trust can be transferred privately via assignment of beneficial interest—no need for a public deed recording.
Should a Land Trust Be in Your Estate Plan?
Incorporating a land trust into your estate plan could be a smart move—depending on your specific situation. Here are some reasons why:
✅ A Land Trust Might Make Sense If You:
- Own rental properties or investment real estate
- Want to keep ownership private (useful for public figures or landlords)
- Have a complex real estate portfolio across multiple jurisdictions
- Want to simplify the transfer of property to heirs
- Wish to avoid probate in multiple states (if you own property in more than one)
🚫 A Land Trust May Not Be Necessary If You:
- Own only your primary residence and already have a revocable living trust
- Aren’t concerned about privacy or probate
- Prefer simplicity over layered legal structures
Final Thoughts
A land trust isn’t a one-size-fits-all solution, but for real estate owners looking for privacy, flexibility, and streamlined estate transfer, it can be a valuable part of an estate plan. That said, the rules around land trusts vary by state, and they don’t offer the same level of asset protection as other entities like LLCs.
Before moving forward, it’s wise to consult with an estate planning attorney who understands both trusts and real estate law. With the right strategy, a land trust can offer peace of mind and practical benefits—for both you and your heirs.
Have questions about how a land trust might fit into your estate plan? Drop them in the comments or reach out to set up a complimentary initial call.
