|
IWP!, flagship product is Chicago's premiere real estate Investment
magazine. Entitled Invest With Passion!, it is the tool for investors and professionals in the
Mid-West. The publication seeks to grow it's market share by providing
powerful information designed to build the reader both as an investor and a
person.
Since it's release in January of 2006, the magazine has been well received and
continues to gain momentum and support. The education, information, and
networking opportunities for the real estate investor has been long neglected.
No More!
The time is now and the momentum is building.
It's Happening!
|
|
ILLINOIS LAND TRUST
By Kevin Kete
If so, consider an
Illinois Land Trust just as you might choose to safeguard important papers
or other personal property in a safety deposit box. An Illinois Land
Trust provides a ‘vault’ for the protection of your real estate assets,
arguably everyone's most valuable investment.
A land trust is a simple
and inexpensive arrangement under which real estate owned, or about to be
acquired, in Illinois can be transferred to a special type of trust. Under
this arrangement, the trustee becomes the legal title holder to the
property. However, the trustee holds the property for the benefit of the
beneficiary of the trust and acts only on the direction of the
beneficiary. (In general, the beneficiary is the person or persons who
first establish the land trust.) Plus, the advantages of direct ownership
of the real estate, such as the homestead exemption and senior citizen
exemptions, are all retained and you stand to gain many more benefits with
a land trust.
The benefits of using an
Illinois Land Trust include:
1. Elimination of
Probate Expenses and Delays
The land trust agreement
allows the beneficiary of the trust the flexibility to designate the
succession of ownership exactly as desired. For example, the beneficiary
may designate his/her spouse, children or other successors. By
transferring the real estate through a land trust, successors can bypass
costly and time consuming probate proceedings relating to the property and
thereby deal immediately with the property. This can help avoid insurance,
real estate taxes and utility bills which would be payable during a
probate period.
2. Insulation from Liens
and Judgments
Under applicable laws,
liens, claims, judgments and other such matters against an individual will
automatically attach to any real estate owned in the name of that person -
either individually or as a co-owner with others. This would make the sale
or refinance of the property more difficult. If title to the same property
is held in a land trust, legal matters affecting the beneficiaries do not
pass through to the subject property.
3. Ease of Ownership by
Multiple Owners
When dealing with matters
of title to real estate which is owned by more than one person, such as
when the property is sold, it is generally necessary for all of the owners
to sign applicable paperwork. However, if the property is held in a land
trust, the beneficiaries may designate one or more of them to direct the
trust to sign paperwork in connection with the title. This may be of real
benefit when it is not always practical to have all owners available to
sign documents.
4. Ease of Selling,
Transferring Interests and Use as
Collateral
The beneficiary's
interest in a land trust is considered a personal property interest under
the law. As such, it makes the transfer of the beneficiary's interest easy
to accomplish, as the underlying property ownership can be transferred
this way rather than by deed. This could also be helpful if the
beneficiary wants to assign his/her interest as collateral to secure a
loan, or if the beneficiary wants to make annual gifts of fractional
interests in the property to grandchildren or others.
5. Confidentiality
Because the legal owner
of a property in a land trust appears in the public record only as a
numbered land trust in the name of the trustee, the beneficiary's interest
in the trust remains confidential. Many people believe that the nature and
extent of their real estate holdings should be no less confidential than
their bank account balance or the contents of their safe deposit box.
The costs of holding real
estate in an Illinois Land Trust typically include an Acceptance & First
Year Holding Fee and an Annual Holding Fee for subsequent years scaled
according to the type of real estate and its market value. There is a fee
charged for executing specific documents such as contracts, deeds, leases
and mortgage documents. However, the need for document execution by a land
trustee is usually infrequent. More important is the experience level of
the land trust administration staff and as quick a turn around as is
practicable.
Kevin L. Kete is the Vice
President of North Star Deferred Exchange which provides Qualified
Intermediary services for investors to affect a tax deferred exchange.
For more information, he can be reached at 312-242-6217 or via email at
kkete@northstartrust.com.
|
|
|
