Quest Trust Company offer Land Trusts for Real Estate Investors
Quest Land Trust Vs Living Trust
These types of trusts are often called “Illinois Land Trusts,” because businessmen and politicians in 1800s Chicago were the first to establish the vehicle. Several politicians used these trusts to purchase land in the area and protect their roles as a city alderman because they would have been barred from voting in local city development projects as landowners in the same area.
First, it is important to understand the general concept of a trust. A trust is a legal instrument used to hold assets for the benefit of another. The person who creates the trust is called the “grantor” or “settlor” and the people who manage the trust are called “trustees.” The “beneficiaries” are those who may benefit under the trust.
A Quest Land Trust Vs Living Trust
One land trust example is known as a real-estate land trust. Corporations and other institutional buyers sometimes use these trusts to purchase large tracts of land to discreetly avoid publicity. Publicity might cause the price of future land purchases to increase and potentially disrupt the firm’s plans for developing or profiting from the land. Individuals usually use land trusts for privacy and to avoid probate. In both cases, the trust itself is the buyer.
Best Land Trust Agreements
Because the assets are in trust, when the surviving spouse dies, they are not included in the surviving spouse’s estate, and the surviving spouse’s exemption is still available as well. This allows a married couple the opportunity to use up the full, combined federal estate tax exemption amount ($10.98 million in 2017).
Family Trust Vs. Living Trust: What’s The Difference?
In State Street Bank’s Trust Department, each account is managed with a focus on fulfilling the wishes of each client. Whether you are a current bank customer or new to town come and meet our experienced, knowledgeable and professional staff. We truly believe that they are what set our Trust Department apart. With decades of combined experience in trust services our staff provides our clients with a deep commitment to personalized service. We are very flexible and adjust to meet your needs.
Land Trust Versus Living Trust – What’s The Difference
If you are in a position to need to avoid federal estate tax, professional advice is crucial. Even in seemingly simpler situations, though, a living trust attorney can help you make the best decisions on all kinds of estate planning issues, including which type of trust is best for you.
Land Contract Vs Living Trust
A community land trust is another type of land trust. Certain non-profit organizations can establish this type of trust to set up low-income housing. Typically, a homeowner will pay for the building structure as well as the land it sits on. In the case of a community land trust, they would pay for only the structure itself.
One of the main advantages of this type of trust is that the actual property owner remains anonymous. In public records, the name of the trust is the holder of the property. This type of arrangement can not only bring some legal protection, but it can also help the property owner negotiate prices if he or she is particularly wealthy.
In fact, the world-famous Walt Disney resort in Orlando, Fla., was initially purchased by a trust. The original landowners of the Florida swamplands, where the resort now stands, had no idea, Disney, already a burgeoning company at the time, was behind the purchase.
Which method is preferable depends on your situation, but often the goal of creating a family trust as a living trust is to transfer wealth to family members and remove assets from the grantor’s legal ownership, while still allowing her control over the trust property and the right to receive benefits from the assets as well.
A credit shelter trust is set up so that when one spouse dies, the trust property can be used by the surviving spouse and the surviving spouse can receive income from the trust’s assets, but the property passes to other familial beneficiaries—usually children—federal estate tax-free up to the decedent’s exemption amount ($5.49 million in 2107).
Both testamentary and living trusts are revocable trusts, which means that the trusts’ terms can be changed at any time, or the trust may be cancelled entirely, by the grantor of the trust. A revocable trust is the most flexible type of trust because of the possibility of changing it.
Set-up costs may be another important factor when deciding between a testamentary trust and a living trust. Establishing a living trust requires additional planning and documentation beyond a last will and testament, so it costs more up front as well. Depending on whether you gain any tax savings, though, the cost analysis may end up swinging in favor of a living trust.
Land Trust Primer Note: The Illinois land trust is only available for real property within the State of Illinois. Other states may recognize and may grant legal status to the Illinois Land Trust, but this page deals only with land trusts for real property within the State of Illinois and governed by Illinois law. We have received numerous inquiries from people in other states looking for help with an “Illinois Land Trust”. We cannot help with these requests. We are licensed to practice law only in the State of Illinois. If you have a land trust issue outside of Illinois, consult with an estate planning or real estate attorney in your own State.
A land trust is also a revocable, living trust, but it vests both equitable AND legal title in the trustee, leaving a \”personal property\” interest in the beneficiary. What does this mean? Basically that the beneficiary can transfer his interest in the trust like a shareholder in a corporation, without affecting title to the property. This makes transfers of ownership very simple, and not recorded on public records. In some states, this may avoid transfer tax normally due on the transfer of ownership of the property.
The opposite is an irrevocable trust, which forbids changing any of the provisions in the trust or cancelling it. In irrevocable trusts, the grantor gives up all rights and control over the trust as well as the property contained in it, which means he can’t act as a trustee or remove assets from the trust. There may be tax advantages and other personal reasons to opt for an irrevocable trust.
Sometimes the term “family trust” refers specifically to a “credit shelter trust,” “bypass trust,” or “B trust,” when it is used to reduce or eliminate state or federal estate taxes upon the death of a surviving spouse.
A different kind of land trust is called a conservation trust or conservation easement. In some cases, a non-profit organization may purchase or take the donation of a piece of land. The aim is to protect the land’s natural resources from commercial development or other activities that may lead to disruption or pollution. The trust agreement can detail the use of the property. For example, an organization may deem that use of the land be limited to recreation but not for any development.