Land Trust Services
The Facts about Land Trusts
A land trust is a simple, inexpensive alternative for holding title to Illinois real estate. With a land trust, the Bank, as your Trustee, holds the recorded title, but at the same time you, the beneficiary, whose interest is not disclosed, exercise all the rights and conveniences of ownership. This method of owning real estate eliminates many of the difficulties encountered in acquiring, owning or selling real estate.
As beneficiary, you retain all the normal rights of ownership including the collection of rents, management and maintenance of property, and payment of taxes. By written direction you authorize the Trustee to execute deeds, mortgages, leases and any other legal documents that affect legal title to the property.
Who can create a Trust
A land trust may be created by anyone capable of entering into a contract. An individual, a corporation, a partnership, trust, or other business entity may create it. Land Trusts are especially popular with land developers, builders, sub dividers, and other professional groups. For the general public, a Land Trust may also be used as an inexpensive estate-planning tool.
How a Land Trust works
Under a Land Trust agreement, the beneficiary retains complete control of the real estate in the same manner as if the recorded title were in his or her name. The beneficiary may end the trust whenever he or she desires, and may add additional property to his trust at any time. Exclusive and full power in all transactions concerning the property lies with you, the beneficiary. The Trustee executes deeds and mortgages and deals with the property only if directed to do so in writing by the beneficiaries.
The Benefits of a Land Trust
- Privacy of Ownership
- Succession of Ownership
- Avoidance of Probate
- Avoid the Risk of Joint Ownership
- Avoid Liens Against Title
- Multiple Ownership is Simplified
- Ease of Conveyance
- Using the Interest as Collateral
How do you create a Land Trust
At the time real estate is purchased or after it has been acquired, a Trust Agreement is completed and signed by both the beneficiaries and the Trustee. This agreement directs the Bank to hold title to the real estate for you and instructs us as to the persons who will have the authority to direct the Trustee and who will succeed to ownership upon your death.
For information regarding our Trust Services and Fees, please contact our Trust Department at (773) 594-5900.