A main advantage of land trusts is:
Correct Answer
A) The owner's identity is kept out of the public record
In a land trust the trustee takes title to the real estate and the beneficiary's interest is personal property governed by an unrecorded trust agreement. Because only the trustee is named in the deed and in the recorder's and assessor's records, the beneficiary's identity stays out of the public record, which is the principal reason the arrangement is used. The trust changes who appears on the record; it does not change the property's tax status and it does not create survivorship rights by itself.
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Key Terms:
Related Concepts
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
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