What Is a Land Trust?
A land trust is a legal arrangement in which a trustee holds title to real property for the benefit of one or more beneficiaries. The trustee's name appears on the deed and in the public records, while the beneficial owner's identity remains private. The beneficiary retains control over the property, including the right to direct the trustee to sell, mortgage, or manage it.
Florida Land Trust Law
Florida land trusts are authorized by Section 689.071, Florida Statutes. Key provisions:
- Privacy — The beneficiary's identity is not part of the public record. Only the trustee is named on the deed and in property tax records.
- Trustee authority — The trustee holds legal title and can convey, mortgage, or lease the property at the beneficiary's direction.
- Beneficial interest is personal property — The beneficiary's interest in the land trust is classified as personal property under Florida law, not real property. This has implications for creditor protection and estate planning.
- Homestead — Property in a land trust can qualify for the homestead exemption if the beneficiary is a natural person who uses the property as their permanent residence.
Why Florida Investors Use Land Trusts
- Privacy — The owner's name does not appear in the public records, protecting against unsolicited offers, lawsuits, and public scrutiny.
- Ease of transfer — The beneficial interest can be assigned without recording a new deed, avoiding documentary stamp tax and recording fees.
- Avoiding due-on-sale triggers — Transferring property into a land trust where the borrower remains the beneficiary may avoid triggering the due-on-sale clause under the Garn-St. Germain Act (for residential properties with 1-4 units).
- Multiple property management — Investors holding multiple properties often use separate land trusts for each property to isolate liability.
Related Terms
- Living Trust — A different type of trust for estate planning
- Trustee — The person who holds legal title
- Beneficiary — The person who controls and benefits from the trust
- Homestead Exemption — Available if beneficiary qualifies
Barnes Walker Land Trust Services
Barnes Walker's attorneys draft Florida land trusts and handle title transfers into and out of trust structures. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 736 (Florida Trust Code)
The Florida Trust Code governs the creation, modification, and administration of trusts, including trustee duties, beneficiary rights, and trust termination.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC