What Is A Land Trust And Why Would You Want One In Georgia

“Land trusts in Georgia are conserving family farms and ranches and important natural areas that protect wildlife and plant habitat. Land trusts are working to ensure all people have access to the benefits the land provides, including secure and clean drinking water supplies, places to recreate and protection from extreme weather events.” https://landtrustalliance.org/land-trusts/gaining-ground/georgia

A land trust is a legal entity that assumes control over property and other real estate assets.

Most people put their land in trusts. They might do this to protect the land itself from things like overdevelopment or pollution. They also might do it to protect themselves from the risks or liabilities that come with owning valuable property. With that in mind, it is easy to see the inherent value of land trusts.

As a living trust, which is generally revocable (meaning the terms of the trust can be changed or terminated at any time) land trusts are only associated with real estate. The most common types of land trusts are title-holding land trusts, conservation land trusts, and community land trusts. The types of assets a land trust can own include physical property (homes, commercial buildings, and plots of land), property notes, and mortgages.

Title-holding trusts are used for privacy, estate planning or to facilitate borrowing arrangements.

The landowner is both the grantor and beneficiary. As such, they sign a deed of trust. Then, a trustee simply holds the title with no responsibility to manage the property’s use. This kind of a land trust keeps the assets out of probate court and lets the owner preserve anonymity.

Community land trusts are nonprofit, community-based organizations that typically aim to ensure long-term housing affordability. They do this by separating ownership of land on which a building (such as housing) is constructed and the building. The trust acquires permanent ownership of a parcel of land and enters a long-term, renewable lease, typically 99 years, with homeowners instead of a sale. When homeowners sell the residence in the land trust, the sellers earn only part of any increase in property value. The remainder is kept by the trust, which maintains the affordability of the residential units for future low- to moderate-income families.

Been thinking about putting any real estate assets into a land trust? Give my office a call at 404-370-0696.

If you’re considering a land trust ensure you do it right.  You need to ensure you’re entering into the appropriate type of land trust. Additionally, you need to make sure the whole thing is airtight!

Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!