Trusts can be adapted to many purposes and come in a variety of forms. One type is known as a land trust, in which the document forms a legal entity that holds real estate for the benefit of its named beneficiaries.
Creating the trust
In Florida, individuals can set up a land trust in a few steps. First, it’s important to choose a responsible person or entity to act as trustee. They are responsible for managing the land trust and ensuring that the terms of the trust agreement are carried out.
The trust document should describe the property that is held by the trust. This includes a legal description and should detail any restrictions on its use.
The trust document should also include the name of the trustee, the name of the beneficiaries, the purpose of the land trust and its terms and conditions. The purpose of the land trust is usually to hold real property for the trust beneficiaries. The terms and conditions may include how the trustee will manage the property, how the trust can be terminated, and how income or proceeds will be distributed to the beneficiaries.
It should also address the trustee’s specific powers and duties, like the authority to buy and sell the property or make improvements to it, and the process for removing the trustee if that becomes necessary.
The person who owns the property must transfer the property to the trust and notify the lender of the transfer, if applicable.
The specifics of the land trust will depend on the property owner’s needs and wishes.