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Merritt Law, P.A.
Center Gate Office Park
5550 Bee Ridge Road, Suite 3
Sarasota FL 34233
941.953.4140
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Land Trusts in Florida
In October 2006, Florida's Land Trust Act, F.S. 689.071, became effective and modernized Florida's land trust statute. It codified certain case law regarding land trusts. A Florida land trust is a trust agreement where another person or entity holds real estate in its name for the beneficiary, but the beneficiary remains in control of the trust corpus. Some benefits of a land trust include: (i) the trustee of a land trust is not required to be qualified to act as a fiduciary; (ii) beneficiaries of a land trust generally are not liable for the trust's liabilities; (iii) beneficiaries may direct the operation of the land trust; (iv) the principal residence of a beneficiary that is held in a land trust is entitled to the homestead tax exemption under certain circumstances; (v) a land trust provides anonymity for the beneficiary; (vi) establishment of separate land trusts for each piece of property can limit the liability resulting from an accident on the property; and (vii) a land trust may be structured to avoid probate as the interest in the land trust might pass immediately upon death. There are many more benefits to land trusts and the firm can provide you with more information.
If you are currently using LLCs or corporations to hold properties, you must consider a land trust. The benefits provided by Florida's Land Trust Act signficantly change your options and, as illustrated, land trusts are superior in many ways.
Although a few banks and other lenders do not understand land trusts, we will provide them with the information that they require and, of course, invite them to contact their advisers with any additional questions. After discussion and verfication, virtually all lenders accept land trusts as mortgagors.
Contact this firm to determine whether a land trust will benefit you, your family, your estate, and your business.
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