WHAT IS A FLORIDA LAND TRUST?

A Florida land trust is a type of trust specifically designed for holding title to real property in Florida. Holding title in a land trust has various benefits including the following:

• Privacy.  When property is put into a land trust, it can be arranged so that no one knows the identity of the actual property owner. A search of the public records will not identify the actual owner. In fact, it's nearly impossible to determine the identity of the owner when the land trust is structured properly. 

• Liability Protection. Generally, liens and judgments against the actual owner of the property do not attach to the property in a land trust. 

• Probate Avoidance. A property owner under a land trust can pass the property on to others without the need for probate court. Successors can be named in the trust, so the property automatically passes to whoever the owner chooses upon death. 

• It can be revoked at any time.

There are few downsides to using a land trust, but the possible ones are:

• If a loan is involved in the purchase, make sure the lender is aware of the desire to use a land trust.  Not all lenders will allow taking title in this type of trust.

• The same holds true for insurance. When getting insurance, make sure the insurance company is aware of this fact. Sometimes, insurance companies are not familiar with this type of trust.  It should be differentiated from a traditional estate planning revocable trust. 

If you have any questions regarding land trusts or any questions regarding taking title, please don't hesitate to contact me.

If you would like to calculate title insurance rates or other closing costs, please click below.