5 reasons to use a land trust

A land trust is usually made for the benefit of the party to maintain a land owned by them, to be taken care of by a trustee. The trustee is appointed to maintain the legal ownership of the land. There are 5 popular reasons why and how to use a land trust. Many organizations use this form of land trust for their benefits. The corporate sector uses this for accumulating large tracts of land and the non-profit groups to hold conservation and limited easements.

The foremost of the 5 reasons to use a land trust is

• To avoid publicity
• To get protection against liens
• Discourage any litigation
• Protect you from the HOA claims and compensation
• Enables contracts assignable

The first reason is to avoid publicity and respect the privacy of the owner. During the legal transaction or deal of land selling and buying, maintaining the privacy has many benefits:

• The corporate sector companies keep the land deal confidential so as to avoid further increase in the price of the land. The firm may be deciding to buy more land and publicly announcing may disrupt further plans of the company to acquire more land.
• Moreover, if you are in a city which has strict law enforcement, and if you own more than one property you may be questioned by the court too often.
• Privacy is very vital for you and using a land trust just allows you to do that.

Secondly you can be protected against liens. The benefit of a land trust is that you are just in case; you are dealing with a seller in foreclosure. When the land and property is filed in another name or trustee, then you are not liable for the judgment or the IRS.

Another good reason is that the plaintiff will be interested in you only if he finds that you have enough money to claim and that his fee can be collected. The attorney will be least interested if you appear 'broke'. These are some valid reason why to use a land trust when you own a number of other properties.

The presence of a land trust will help to discourage any litigation of any kind.

While taking a condo in your name and the HOA announces an amount due, then you are liable personally for trial and can be sued for all the assessments and dues. When you take the title in a land trust then, the property or the trust will be liable for prosecution and not you. This can protect you from the HOA claims and compensation. You can find many effective and imaginative ways to use the land trust and the last among the top 5 reasons to use a land trust is that it makes the contracts assignable. The beneficiary of the trust can be changed from the original trustee without changing the title of the property. This is very similar to the assignable stock in a corporation. In the case of a real estate contract this property is non-assignable.

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