How To Collect Rent With Property Held In Land Trust?

Question

So I have a property that I put in a land trust with a relative as the trustee and the beneficiary as an LLC. My question is, who do I have the tenant make checks out to?

The relative is basically managing the property 100% for me and will be collecting rents anyways, just curious if anyone here knows the best way to go about handling it?

Thanks in advance

Pat L. · Answer

Depends on the State as some Trustees have to maintain an active duty to the Trust. So having the Rent made out to them for the benefit of the Trust would keep them active per se. BUT I would check with your FL state attorney.

"A trustee is the person who holds legal title to the trust property for the benefit of another person and who must carry out specific duties with regard to the trust property."

Michaela G. · Answer

I was a blonde when I wrote that, what can I say ;-)

Wayne Brooks · Answer

Jay, have the checks made out to your LLC if you want.

Michaela, no, a land trust is simply a shell type entity used for asset protection and anonymity, among other things, like a simplified LLC

Jay Dawson · Answer

Basically the title is held in the trustee's name and the beneficial interest in another individual's name/LLC. The land trust makes it easy to transfer beneficial interest from one beneficiary to another without needing to change the deed/title, which can get expensive.

Michaela G. · Answer

Maybe I'm mistaken, but I thought a land trust is like an 'agreement for deed' , in that you might sell a property on a land trust and keep the deed in escrow, until the buyer has paid you off.

Are you talking about a land trust or are you talking about a trust?

How To Collect Rent With Property Held In Land Trust?

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