TRANSFERING PROPERTY INTO AN ILLINOIS LAND TRUST

An Illinois Land Trust is a legal method to own property in Illinois where legal title is held with a trustee and the true owners have the right to convey and use the property.  The owners can use property as the true owners.  

Property must be located within the State of Illinois.  Chicago Title Land Trust Company is an organization that acts as a trustee of Land Trusts in Illinois.  You can call Chicago Title Land Trust Company to request setting up a Land Trust for your property.

Benefits of establishing an Illinois Land Trust:

·       Privacy.  An Illinois land trust hides the true owners of the property, assuming the property was purchased in the name of the land trust rather than being transferred into the deed at a later point.  Many property owners, especially those who are professionasl or own businesses, may prefer to hide their names from public records.  

·       Asset Protection.  A judgment creditor of an owner of property may record a judgment against a property, resulting of the risk of foreclosure of the property, or, having to pay the judgment if the property is sold.  An Illinois Land Trust adds a layer of protection against claims against the property.   

·       Beneficial interests.  When property owners die, an Illinois Land Trust allows owners to transfer property to their designated beneficiaries without having to go to court.  This allows the beneficiars to avoid having to probate an estate, making it easier for beneficiaries to obtain ownership or interests after owners die.  

Downfalls of establishing an Illinois Land Trust:

·       There are costs to set up the Land Trust as well as maintence fees that must be paid annually.  These fees can add up.  

·       If you’re property is already in a Revocable Trust or a Transfer on Death Instrument has been recorded, some of the benefits of transfering property into a Land Trust are hindered.  If a property owner only wants to avoid having heirs to an estate to probate an estate after they die, a Transfer on Death Instrument may be more cost friendly.  

Feel free to reach out to our offices if you have questions or are interested in establishing a Land Trust.