- Living Trust Trustee
Living Trust Trustee
Trusts, PoA, AHCD, Probate & More
Land Trust Trustee
A land trust is a legally binding agreement wherein a property owner transfers title to a real estate to an individual or entity referred to as a trustee. The trustee holds title to this real estate and manages it according to rules outlined in the trust agreement, and for the benefit of the trust beneficiary(s).
The grantor is the one who creates the trust. The trust beneficiary is an individual or entity that benefits from the trust property.
The grantor of a land trust is often its beneficiary as well. In other words, with a land trust, the person who created the trust is often the one who will benefit from it. Furthermore, the grantor is typically also the person who funds the trust with real estate that he or she owns.
The beneficiary of a land trust usually directs how the trustee must manage the trust. So, unlike most other trusts, where the contract is between the trustee and the grantor, a land trust is a contract between the trustee and the beneficiary, who is also the grantor and retains the right to occupy, use, develop, rent, buy, or sell the trust real estate.
The Benefits of a Land Trust
When you buy land in your own name, whether developed or undeveloped, you expose yourself to a variety of liabilities. Creditors can use court judgments to seize your property if they know that you have bought it. What's more, accidents happen all the time and if someone is injured on property that bears your name, you can find yourself as the defendant in a very expensive personal injury lawsuit.
Having your name attached to real estate creates liability. Therefore, you want to avoid this type of exposure whenever possible. Using a land trust to hold real estate is ideal because it enables you to avoid these unnecessary headaches by keeping your name off of public records, while still maintaining control over your property.
Land trusts are most often created as revocable trusts that can be amended or terminated at any time. A revocable trust, by itself, doesn't usually provide any asset protection. On the other hand, an irrevocable land trust that is properly structured can provide you with much-desired asset protection.
The primary purpose of a land trust, however, is anonymity, which can allow you to purchase real estate discreetly and expand your real estate holdings with more freedom and much less risk.
Selecting a Trustee For Your Land Trust
In a land trust, the trustee has a fiduciary role, but follows directions given by the beneficiary, who has an earnest interest in what the trust agreement says. Therefore, to avoid liability, the trustee should also be interested in what the trust agreement says at all times. This will enable the trustee to ensure that they are doing only what the trust agreement specifically permits them to do.
This is important because, even though the trustee is usually exempt from the debts and liabilities of the land trust, they can still be held personally liable when something goes wrong. Especially if they have behaved negligently, fraudulently, or without the approval or direction of the trust beneficiary.
Because the trustee has fiduciary responsibilities regarding the administration of the land trust, it is important that you choose a trustee who exhibits the following characteristics:
- Honesty;
- Trustworthiness;
- Financial Integrity;
- Knowledge; and
- Shared Values
The trustee you choose can be a friend or relative that you trust. Furthermore, you should always try to choose a trustee who you get along with. Nevertheless, if that trustee doesn't work out for any reason, they can be replaced at any time.
You can act as your own trustee by having your original trustee resign after the property being transferred into the trust has been re-titled. You then can privately take on the role of trustee yourself.
Moreover, you can hire a professional service to set up your Wyoming land trust using a “nominee trustee” to further enhance the anonymity it will provide.
Why Consult With an Experienced Wyoming Estate Planning Attorney?
To ensure that you are set up to enjoy all the benefits of a land trust before the next time you purchase real estate, consult with an experienced Wyoming estate planning attorney. Setting up a land trust can be complicated. But a seasoned professional can help you explore your options and select the right trustee for your Wyoming land trust.
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