What is a Florida Land Trust

A land trust is a legal arrangement where a trustee holds legal title to real estate on behalf of a beneficiary. In Florida, a land trust is a commonly used estate planning tool that allows individuals or entities to hold title to real estate without disclosing their identity.

Under Florida law (Florida Statute 689.071), a land trust is established by a written trust agreement that identifies the trustee, the beneficiaries, and the property being held in trust. The trustee is responsible for managing the property and carrying out the terms of the trust agreement. The beneficiaries, on the other hand, have beneficial ownership of the property and are entitled to receive the income and profits from the property.

The primary benefit of using a land trust in Florida is anonymity. The trust agreement is not a public record, which means that the names of the beneficiaries can be kept private. This is particularly useful for individuals who want to keep their ownership of real estate confidential, such as celebrities, politicians, or business owners. It also protects the beneficiaries from potential lawsuits, as the property is owned by the trust and not by the individual beneficiaries.

Another advantage of using a land trust in Florida is the ease of transferring ownership of the property. If the property is held in a land trust, the trustee can simply transfer the ownership to a new beneficiary by changing the terms of the trust agreement. This avoids the need for a formal transfer of the title and the associated fees and taxes.

It is important to note that while a land trust in Florida provides privacy and ease of transfer, it does not provide asset protection or tax benefits. The trust is still subject to state and federal taxes, and the property held in the trust is still considered an asset that can be seized by creditors in certain situations.

In conclusion, a land trust is a legal arrangement in Florida that allows real estate to be held in a trust with anonymity for the beneficiaries. It offers advantages such as privacy and ease of transfer but does not provide asset protection or tax benefits. It is recommended to consult with a qualified attorney and tax professional to determine if a land trust is appropriate for your specific situation.