The nature of the Land Trust A Land Trust is a real estate property vehicle, a trust agreement under which the beneficiary directs the agent in all matters relating to the ownership of the trust property. The beneficiary shall also keep the agent free from any liability. The trustee usually prepares the deeds and assignments of economic interests, while the managing beneficiary usually prepares the leasing contracts, loan documents and instruments as well as other documents for verification and signature by the agent. In all cases, the beneficiary remains responsible for the trust transactions. Since most landtrusts are revocable, they do not need to file a separate restitution. This is due to the fact that a revocable country trust is considered by the IRS to be a transit unit. Farm families who wish to pass on their property to future generations, without the risk of division by dissenting heirs, may be interested in using a trust. The function of all trusts is to protect the owner of the estate from certain legal proceedings and tax risks. A wealthy couple could create a trust to protect part of their assets from inheritance tax if they die. When it comes to real estate trusts, the trust greatly simplifies the process of transferring ownership to heirs or new owners.
A trust can be either irrevocable – if the trust agreement cannot be cancelled – or revocable, meaning it can be dissolved at any time. . . .