4 Benefits of Land Trusts

10/14/2024 10:35 AM Mark Goodman

Every so often we get a call from a prospective client who wants to talk about establishing a land trust as part of a real estate transaction. In essence, this move allows land to be held by an established trust instead of an individual, which can have a number of benefits to the buyer.

Why Would Someone Want A Land Trust?

A land trust can be a great option for a buyer depending on their motivations and goals. Some reasons why an individual may look into establishing a land trust prior to moving forward with a commercial acquisition include:

Anonymity - An individual may hope to keep a low profile when making a commercial purchase, especially if they are a well-known individual or work in a high-risk profession.
Family Succession - A land trust can help to establish how a property will be managed or transferred to the next generation upon passing of the original owner.
Leverage - Acquiring land under a trust can help a person avoid losing leverage in negotiations. For example, if the investor wanted to acquire a few different adjacent properties, and they were named in a sale, it may be tougher to complete the rest of the purchases because those property owners now know that they can hold out for more money since they know that the investor has already bought adjacent property.
Marital Dissolution Disputes - A land trust may help to keep property separate from marital property, similar to how a prenuptial agreement can ensure assets acquired prior to marriage will not be equitably split upon the dissolution of the marriage.

There are other reasons why someone may pursue a land trust during the acquisition of commercial property, but anonymity and a desire to keep out of the limelight tend to be the most common.

For more information about land trusts or other ways to protect your financial or personal interests during a commercial property acquisition, make sure to connect with the experienced team at Commercial Partners. We know how to ensure the process runs smoothly from start to finish. To set up a consultation, or for assistance during any stage of a commercial purchase, reach out to our team today at (612) 337-2470.