Land Trust and Alternatives

For an annual fee, some trust companies will act as the trustee of a trust which owns a specific piece of real estate. Called a “land trust”, the trustee uses a standard trust agreement, which provides a space where the homeowner can specify what should happen to the property in the event of their death. The drawbacks of a "land trust" are the annual fee charged, the lack of flexibility in property distribution, and the inability to add property to the land trust.

Depending on the client’s goals, I may suggest using a “Transfer on Death Instrument” to achieve similar results or, if warranted, drafting a revocable trust to hold title to the real estate.