A Chicago Land Trust Attorney Explains Illinois Land Trusts

A trust is an arrangement wherein a trustor gives a trustee the right to hold title to a property and manage the assets placed in the trust for the benefit of the beneficiary. An Illinois land trust is a specific type of trust that operates a little differently than the typical trust. Instead of the trustee maintaining control over what happens to the property in the trust, the beneficiary has all the rights and conveniences of ownership of the land rather than the trustee. The trustee is in charge of executing documents related to the land held in the Illinois land trust, such as deeds and mortgages, but only as directed by the beneficiary.

Advantages of an Illinois Land Trust

There are advantages to placing real property in an Illinois land trust, including:

• Probate Avoidance: Probate is the process of administering someone’s estate after they pass away. It can be time consuming, tedious, and costly. When property is placed in an Illinois land trust, probate is avoided. 

• Convenience: An Illinois land trust can be vested in the name of one person or in multiple people. It is even possible for a group of owners to designate one person as the decision maker. An Illinois land trust also makes selling or mortgaging a property with multiple owners much easier than it would be if the property were not in the trust. 

• Security: People are sometimes afraid that they will lose their assets, including real property, as a result of a lawsuit or judgment. An Illinois land trust may provide the asset protection they are looking for. This is generally the case for business professionals such as lawyers, accountants, and doctors. 

• Privacy: Many property owners appreciate having their property ownership kept private. An Illinois land trust will keep the identity of the owner of the property hidden from public view. It does this because the deed at the courthouse will have the name of the land trust rather than the individual owner, and trusts are not public record. Also, as an Illinois land trust is able to avoid probate, private information is not disclosed even after the owner dies.

Disadvantages of an Illinois Land Trust

The most obvious disadvantage to an Illinois land trust are the fees and costs associated with the set-up and administration of the trust. Land trust organizations charge a fee when they initially become trustee, and every time there is any significant change, such as a change in beneficiaries or the property is sold. In addition, yearly administrative fees are generally assessed. A Chicago land trust attorney can advise you on any other disadvantages an Illinois land trust may have for you. 

Talk With An Chicago Land Trust Attorney

If you own a home or land in Illinois and want to learn more Illinois land trusts, contact the experienced legal real estate professionals at the Law Office of Alexis Hart McDowell. Book a consultation at Enterprise Esquire, and a Chicago land trust attorney from our firm will meet with you and after careful consideration of your situation, help you decide whether or not the Illinois land trust is a good option for you.