Land Trust Illegal In Some States?
i was told by one person that Land Trusts are illegal in the State of Missouri... anyone know if there is any truth to this, or if a Land Trust is illegal in ANY states for that matter? is that even possible? thanks, eddie
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I believe there are only 7 states that have specific land trust statutes. Illinois and Florida are two of them. I don't remember the others. However all states recognize land held by a trust. The trust could be a inter vivos (living) trust, a charitable trust etc. Usually people say land trusts are illegal because there are not specific statutes for "land trusts" in the state code. You could have an attorney design a land trust for use in your state using the Illlinois and Florida land trust statutes as a guide but making it fit your particular state laws. I did this in Wash. and it has been reviewed and approved for use by
Fannae Mae. Cost about $1500. A land trust can hold more than land as long as it is related to real estate. i.e. mortgages and RE contracts. etc.
Tennessee does not recognize land trusts. Louisana consideres the benefical interest as realty which eliminates the asset protection characteristic of this instrument.
My advice is not to hire a lawyer to do a land trust for you-if he's not experienced.
You're just wasting your money, and paying for what ever education he may obtain.