Florida Land Trusts are an excellent way to hold the title of many types of real estate, including business, rental, and even, in certain situations, personal real property. The trust becomes the legal owner of the property, and the trust is then ‘owned’ by the beneficiary or beneficiaries. This legal setup offers a variety of important advantages over simply owning property in the traditional fashion.
A Florida Land Trust is simply a legal entity that is created in order to ‘own’ a property. If you are interested in having this type of trust, an attorney can create it according to the needed specifications. When using it to hold property that you plan on purchasing, it is best to have the trust set up prior to the purchase so that the trust itself is used for the transaction, which can keep your name off of any of the purchase documents and out of public records.
These trusts allow the beneficiary or beneficiaries to retain full control over the land in question. The trust is also fully revocable at any time. Adding additional property to the trust is permitted at any time. Once set up, the land will remain in the trust until a time at which the beneficiary chooses to either remove it, transfer it, or take some other action.
There are a variety of important advantages that a Florida Land Trust can provide. While not right for every situation, understanding why these trusts are used can help you to determine whether or not it is right for you.
Some people hope to use a Florida Land Trust to avoid certain fees such as gift taxes, property assessments, transfer taxes, or income from the property. Unfortunately, this type of trust will not accomplish those goals. The beneficiary(ies) of the trust will still need to pay any relevant taxes, fees, or other expenses associated with owning the property.
If you are thinking about purchasing property, or you may be inheriting property in the future, it makes sense to learn more about Florida Land Trusts and how they can help. The Law Offices of John Mangan, P.A., is available to assist with the creation of land trusts. Please contact us to discuss your options and schedule a time to begin the process.