property
land trust
A land trust is an arrangement in which real estate is deeded to a trustee who holds legal title, while the beneficiary keeps control of the property and the right to its income and sale proceeds. The beneficiary's interest is typically treated as personal property. Land trusts are often used for privacy, because public records show the trustee rather than the true owner, and for easier transfers. Availability and treatment vary by state.
- Exam tip
- In a land trust the beneficiary controls the property while the trustee only holds title, and the beneficial interest is usually personal property. Don't confuse it with a REIT.
- Example
- An investor places a rental building in a land trust so the county record shows "ABC Bank, Trustee" instead of the investor's name.
Related terms & state variants
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Last verified: 2026-10-23