How Do Land Trusts Work in Illinois?

 Posted on March 14, 2024 in Estate Planning

A land trust can be a valuable estate planning tool for those who own real property - land and the houses or buildings on it. If you are a landowner, using a land trust to pass your real estate property on to your loved ones after you are no longer here to enjoy it can protect your legacy and ensure that your intended beneficiaries receive what you want them to without struggling through probate. A land trust can be used similarly to how a revocable living trust is used. To create a land trust, you will transfer ownership of your real property to the trust. While you are alive, you can remain the trustee with full control over the property. When you pass, your beneficiaries already have an ownership interest in the trust and can simply have the title transferred. An Englewood, IL estate planning attorney can help you determine how a land trust can fit into your complete estate plan.

Land Trusts Protect Your Property During Your Lifetime 

A land trust can do more than complete your estate plan. When your land trust owns your property, your beneficiaries also have an interest. This can protect your real estate against financial liabilities. If there are multiple owners, it is difficult for creditors or judgment holders to make a claim against your property.

Land Trusts Seamlessly Transfer Real Estate During the Administration Phase 

Taking real estate through probate can be incredibly complex and sometimes results in the beneficiaries needing to sell the property. Using a land trust prevents this problem from occurring. When you pass away, your beneficiaries named in your land trust can simply take ownership of the property.

Land Trusts Protect Generational Homes 

If you have a certain property, like a beach house or a beautiful cabin in the woods, that you want to stay in your family for generations to come, a land trust can help accomplish this. You can name more than one person as a beneficiary. Many name all of their children and eligible grandchildren in their land trusts, giving all an equal interest. Your loved ones may choose to keep the property contained in a land trust, adding their children when they come of age.

Contact a Cook County, IL Land Trust Lawyer 

The Sherrod Law Firm, Ltd. can help you create a land trust to protect your real estate property. Our experienced Englewood, IL land trust attorneys have been helping people in the greater Chicago area seamlessly transfer real estate properties since 2007. Contact us at 312-321-6910 for a complimentary consultation.