What is a Land Trust?

Who doesn’t know the famed Walt Disney who opened Disneyland in 1955? , The original Disneyland theme park was thriving in Anaheim, California, but the business charm admired Walt Disney to purchase more property for the same purpose. 

Once he was flying on an airplane tour and noticed 27,000 acres near Orlando, Florida. He intended to buy the land but realized the seller would increase the price per acre, knowing that the buyer is one of the wealthiest men in the US. 

There he used the ways of a Land Trust and kept his identity as a confidant. The grounds of that particular Land Trust were to enable the purchase of the aspired land by using an anonymous identity. 

What is a Land Trust? 

It’s a legal term that works under four entities, I.e., Grantor or seller, Principal, Trustee, and Beneficiary. 

A land trust is an arrangement of desired property (Principal) in which one party (Trustee) takes the ownership, or authority, at the behest of the property owner (Grantor). A trustee holds the title of the property and produces a benefit for another party called (Beneficiary).  

The main purpose of Land Trusts is to provide the asset owner, a shield from certain tax exposures, and legal proceedings. 

There are both kinds of Land Trusts available, Revocable and Irrevocable. The exception is that a Revocable Trust can be altered by means of trust, while the irrevocable trust cannot be altered until there is no consent of the beneficiaries. 

What Are the Types of Land Trusts? 

For a better understanding of any Land Trust, you must consider its two main types; Title-Holding Trust and Conversion Land Trust. 

Title-Holding Trust, commonly known as Illinois, allows the grantor (owner) to keep the rights of the property as being anonymous.  

This is the type of Land Trust Disney Walt had, but today, not all 50 states allow the legal structure of the Title-Holding Trust.  

A Conversion Land Trust requires a grantor (owner) to give up some of its rights over land use and development.  

Often, the land is used for protecting wildlife, natural resources, and cultural sites from real estate development and thus labeled as protected for the future generation. 

Moreover, a Conversion Easement provides that the land may be used for recreation or agriculture but not for development purposes. 

What are the Benefits of a Land Trust? 

As a property owner or a real estate investor, A Land Trust can give you access to several benefits. 

  • You can conceal your identity as a legal owner. Land Trusts secure your privacy so you can dominate your property without even practicing the name.  
  • Land Trusts allow great Transferability. The beneficiary of the property may be changed without disturbing the public records. Often, it authorizes you to skip the process of probate. 
  • Land Trusts stay productive for tax exemptions. It means your property remains eligible for both senior citizen’s and homeowner’s real estate tax exemptions.  
  • Land Trusts protect you from Liability. It is essential when you are going through competitors. County recorders hold all the data that’s necessary to calculate your net worth, and eventually subsequent move. If you’re thinking of anonymity in the market, you can use Land Trusts and pursue ownership of the land.


Creating your own land trust can be an ideal option for preventing lawsuits and enabling privacy. You can set up a complete trust property strategy constructed on a specific agreement such as a title-holding trust or conversion easement.

If you are looking to buy land for your own use or as an investment, We can help you find the perfect parcel! Fill out this form to let us know what you are looking for, or give our office a call today! (888) 247-7604

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