What are the Primary Benefits of a Florida Land Trust?
Michelangelo Mortellaro, asset protection attorney in Tampa, can construct a properly formed Florida Land Trust to serve the specific needs of Beneficiaries. These trusts offer numerous benefits to beneficiaries, including, but not limited to, the following:
Beneficial ownership interest in a Florida Land Trust is hidden from potential creditors and others interested in your wealth or your investments.
Private Transfers of Ownership
Beneficiaries may sell or transfer their interest in a Florida Land Trust by assigning the beneficial interest to another person who can be added to the trust. This is a private transaction, requiring no recorded deed or mortgage agreement. No one can discover the transfer or its details.
Avoid Probate Proceedings
A properly drafted Florida Land Trust transfers your property immediately to your Beneficiaries named in the trust agreement, thereby avoiding the hassles and costs of a legal probate court proceeding.
When a creditor records a judgment against you, it automatically becomes a lien on all real property titled in your name, apart from your homestead. Your beneficial interest in a Florida Land Trust is personal property, not real property. Therefore, recording a judgment lien in your county does not apply to the trust held in the name of a Trustee.
A Better Partnership Option
Real estate investors or others wishing to partner together to acquire real estate can do so through a Florida Land Trust instead of forming a formal, legal partnership that must be filed with the state and demands filing fees. Land Trusts are not filed with the State of Florida and require no fees.
Save on Taxes and Fees
One way a Florida Land Trust can save money on taxes is by structuring it in such a way as to qualify for certain tax exemptions, such as homestead exemptions, which can significantly reduce property taxes. Finally, because the trust holds legal title to the property, the beneficiary may be able to avoid certain transfer taxes that would otherwise apply to the transfer of real estate.