By: Jackie Bruhn
HomeStar Bank & Financial Services
Phone: (815) 935-5309
IS A LAND TRUST THE ANSWER TO YOUR REAL ESTATE SITUATION?
An Illinois land trust can be an effective tool in the ownership, management and inheritance of real estate property within the state.
A land trust is formed when an individual signs a land agreement and deeds Illinois real estate to the Bank as trustee. The Bank holds legal title to the real estate but does not manage or take possession of the property. The Bank will sign a deed, mortgage or other legal document only with the written direction of the person designated in the trust agreement to have this power of direction.
BENEFITS OF HOLDING TITLE TO REAL ESTATE IN AN ILLINOIS LAND TRUST
A major benefit in creating a land trust is privacy. “HomeStar Bank Trust # ____” appears as the owner of record on all legal documents that are recorded. The customer’s name is not disclosed on recordings, legal notices, transfer tax forms, etc.
A second benefit is that the beneficiary of the trust can designate who will own the property at their death, thus avoiding probate.
Reduce Exposure to Judgments & Liens
Where several people own real estate together, one or more may encounter legal difficulties, which could result in a judgment or lien. If the real estate is held in a land trust, a judgment or lien against an individual will not impair the interest of the beneficiaries.
YOU MAY BENEFIT FROM OPENING A LAND TRUST IF ANY OF THE FOLLOWING APPLY TO YOU
- Individuals who prefer privacy of ownership
- Multiple owners of one parcel
- Individuals who want to transfer title at death without probate
- Individuals with common names, who are tired of questions about judgments or liens against others
- Ownership of Illinois real estate while residing in another state
For more information about Land Trusts or if you have any questions our knowledgeable Trust Services Department is experienced and can answer any questions you may have. For more information or to schedule an appointment please contact me today! I can be reached at my direct line at (815) 935-5309 or by email at JBruhn@HomeStarBank.com.