What is a Land Trust?

A land trust holds real property so the trustee's name appears on public records while the beneficiary — the real owner — stays private. The beneficial interest is personal property, transferable without a deed.

How a Land Trust Works

A land trust involves a trustee who holds legal title to real property and a beneficiary who holds the beneficial interest — the real economic ownership. The trustee's name appears on deeds, tax rolls, and county filings. The beneficiary's identity is documented only in the private trust agreement and is not part of public records.

The trustee has no independent authority. They act only on the written direction of the beneficiary. The beneficiary retains complete control over the property — they can direct the trustee to sell, lease, mortgage, or convey the property.

Key Features

• Privacy: The beneficiary's name is not in public records — only the trustee's
• Personal property treatment: The beneficial interest is classified as personal property, not real property
• Probate avoidance: The beneficial interest transfers by written assignment, not through probate
• Beneficiary control: The trustee acts only on the beneficiary's direction
• Succession: The trust agreement specifies who receives the beneficial interest upon the beneficiary's death

Which States Recognize Land Trusts?

Land trusts are recognized in 7 states:

• Illinois — the original land trust state, well-established with extensive case law
• Florida — explicit statutory framework under the Florida Land Trust Act (§689.071)
• Indiana — common law recognition, no specific statute
• North Dakota — recognized, less case law than IL/FL
• Virginia — recognized, used for real estate privacy
• Ohio — court-recognized, not as well-established as IL/FL
• Georgia — recognized, some title companies less familiar

States that do not recognize land trusts include California, Texas, and New York. In those states, consider an LLC for real estate privacy instead.See states that don't recognize land trusts →

Land Trust vs. Other Trusts

Unlike a living trust or a revocable trust (which can hold any type of asset), a land trust specifically holds real property. The key distinction is the personal property classification of the beneficial interest — this is what allows the interest to be transferred by assignment without recording a deed.

Compare land trusts to LLCs →

What You Need to Set Up a Land Trust

1. Land Trust Agreement — the private, unrecorded contract between trustee and beneficiary. This is what FreeTrustDocs generates.
2. Deed to Trustee — the recorded deed transferring legal title from the current owner to the trustee. You file this at the county recorder's office.

Common Uses

• Real estate investors — keep ownership of multiple properties private
• Probate avoidance — transfer real property without probate
• Multi-property ownership — separate each property into its own land trust
• Negotiation privacy — buy or sell property without public knowledge
• Succession planning — specify who inherits the beneficial interest