property

Illinois Land Trust

An Illinois ownership device created by a trust agreement and deed in trust, in which a trustee, often a bank, holds both legal and equitable title while the beneficiary keeps full control: managing the property, collecting rents, and directing the trustee to sell or mortgage it. The beneficiary's interest is personal property, transferable by assignment rather than recorded deed, and the beneficiary's identity stays out of the public record. The beneficiary is still treated as the seller for disclosure purposes.

Exam tip: 'Trustee holds title, beneficiary holds the steering wheel.' The beneficial interest is personal property, not real property.
Example: A client owns a Chicago apartment building through a land trust. She sells by assigning her beneficial interest, and the trustee signs a deed only at her written direction.

1. In an Illinois land trust, the beneficiary's interest is considered:

Answer & explanation

Answer: D. In an Illinois land trust the trustee holds legal and equitable title, and the beneficiary's interest, though it carries control of the property, is personal property transferable by assignment.

Related terms & state variants

land trust personal property trustee

Sources

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Last verified: 2026-10-23