Using a Florida Land Trust to Avoid Probate

Using a Florida Land Trust to Avoid Probate

Florida is one of only a few states that allow residents to hold legal title to property via a land trust. Land trusts were originally created to keep large family farms intact instead of having to be sold off upon an owner’s death due to income or property tax issues. A Florida Land Trust is available for all owners of Florida property, including foreign owners.

A Florida Land Trust can be established by a person, a group of people, a general partnership, limited liability company (LLC), corporation or other type of business entity. The land trust is created via a Deed in Trust, which conveys the property to the trustee, and a Land Trust Agreement, which details the terms of the trust. The beneficiaries of the land trust retain all ownership rights.

There are three key benefits to a Florida Land Trust, including:

Avoidance of probate.

When real estate is held in a trust, such as a Land Trust, it passes through a trustee to the beneficiaries outside of the probate process. Since the Land Trust Agreement provides for the manner in which ownership is passed upon death, probate is unnecessary.

Ownership is confidential.

With a land trust, the title to the property is recorded in the name of a trustee that is an individual or entity other than the beneficiary. None of the beneficiaries are named in the deed or any other document of record. If the property is eventually sold, however, the names of the owners will be disclosed.

Multiple owner benefits.

Beneficiaries can easily transfer their interests in a land trust to others, which is done through the trustee.  Since the trustee fulfills the management duties of the land trust, only his or her signature is necessary for legal documents. Having only the signature of the trustee makes transfer of interest easier, especially if the land trust beneficiaries are a group of foreign investors.  In addition, the trust agreement can include buy-out provisions in the event of the death of an investor or a conflict among partners. Transfers among beneficiaries are not subject to the Florida documentary transfer tax.

The attorneys at Jurado & Farshchian, P.L. combine their knowledge and experience in Florida real estate law to represent both buyers and sellers of Florida real estate. Contact one of our experienced Florida real estate attorneys at (305) 921-0440, or email us at info@jflawfirm.com.

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