The benefits of holding Florida real estate in a trust are many and varied. A living, or revocable trust, once formed, can continue to have assets placed in it. A trustee, who can be an individual or a business entity, administers the trust per your instructions.
Avoidance of Probate
The avoidance of putting your heirs through the costly and time-consuming probate process is probably the most talked about benefit of using a trust to hold real estate. Once the trust beneficiary (the owner) dies, the trust becomes irrevocable.
The property passes directly to the designated new beneficiaries without any court involvement. The ease of transfer, avoidance of probate, and the elimination of inheritance tax on the property make trusts an excellent vehicle to bequeath property investments upon the death of the owner.
If you are a person that likes privacy, holding real estate in trust provides it easily. In a land trust, the property owners remain anonymous. Only the trustee’s name appears on the trust, not the beneficiaries, so any and all owners keep their land holdings private.
An Efficient Way to Hold Real Estate Titles
Interest in a land trust is an effective and efficient way to hold multiple properties in one organizational and legal structure. As the beneficiary, you may add and subtract properties from your trust. Also, a land trust facilitates ownership by several property beneficiaries.
Safeguards Your Beneficiaries’ Assets
Your successor beneficiaries can benefit from your foresight regarding the assets they are inheriting from you. When you set up your land trust, you can designate how you want your successors to access property assets, including through a spendthrift clause.
Each property owner’s situation is different, so consultation with a legal professional experienced in setting up land trusts is recommended. When set up correctly, a revocable trust can be a valuable tool to safeguard your assets and pass them on.