Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Land Trust

What it is:

A land trust is a trust comprised exclusively of real estate assets.

How it works (Example):

A land trust holds one or more properties for the benefit of a designated group or organization (beneficiary). The trust is managed by a trustee or board of trustees responsible for overseeing the property or properties on behalf of the beneficiary. Land trust beneficiaries can be for-profit or not-for-profit organizations trying to privately accumulate property holdings for purposes such as expansion or conservation. For example, a community with endangered wildlife may have a land trust for pieces of land that qualify as wildlife sanctuaries.

Why it Matters:

The activities of a land trust, as with any manner of trust, are private in nature. For this reason, organizations acquire property by way of a land trust so not to effect a sudden change in the value of the property.