Land Trusts – Transfers at the Beneficial Interest Level
A land trust provides owners with anonymity. This is one of the biggest benefits of establishing a land trust. However, this level of anonymity extends to the transfer of beneficial interest as well.
What is Beneficial Interest?
Beneficial interest allows individuals or entities to receive benefits associated with assets held by another party. Under a land trust, the properties contained within it are considered personal property. Referred to as interests, the transfer of these assets can be done with relative ease. There is no need for a notary, witness, public record, or other such documentation. With a land trust, this provides several important protective measures. For example:
- If you do not want to announce to the world that you have transferred property ownership, a land trust can protect the transaction.
- The transfer of a property owned by a land trust can protect your buyer from having to pay a potential increase in real estate taxes. (If the property was sold, a reassessment would be required and, thus, your buyer may have to pay increased real estate taxes they would prefer to avoid.)
- A land trust can prevent the disclosure of your sale’s value. (This means your net worth is obscured from the public.)
The Role of a Trustee
When you establish a land trust, you must designate a trustee. This individual or professional service, like that provided by Royal Legal Solutions, can only act per directions you provide. When it comes to the beneficial interest of a trust, your trustee will need to accept the transfer.
If you have an entity that is named as the land trust beneficiary, the beneficial interests can be transferred without needing a change in the beneficiary designation. (Entities can include, but are not restricted to, limited liability companies (LLCs), corporations, and personal property trusts.) When an entity acts as the beneficiary, the trustee is exempt from the process. This means they do not have to acknowledge the transfer in any way. If you are seeking full anonymity, this may prove to be your best course of action.
Hiring a Reputable Trustee Service
The professionals at Royal Legal Solutions understand how important your anonymity is. After all, keeping your net worth from public records can help limit and reduce the likelihood of a lawsuit and aid in future negotiations. Through our experience, Royal Legal Solutions can provide you with the best support possible. If you would like to speak with a professional today, please schedule a consultation with Royal Legal Solutions.