August 11, 2025
What is a Florida Land Trust? A Florida land trust is a vehicle for holding title to real property in Florida which acts as a shield against personal liability and provides ease of management for both the individual and co-owners of a real property. Two essential instruments make up a Florida land trust, including the deed that conveys the title of the real property to the land trust and the land trust agreement. The deed to the trustee transfers legal title of the property from the grantor to the trustee. The land trust agreement is a private contract between the trustee and the beneficiary that specifies the terms and powers of the trust, identifies the beneficial owner of the property, and grants the beneficiary the right to manage, control, or direct the trustee. Terminology Land Trust Agreement : The legal instrument that establishes the land trust and defines the powers and authority of the trustee and beneficiaries. Trustee : Holds legal or equitable title to the property. Beneficiary : Has the power to direct the trustee, control management of the property, and is entitled to all rental or sale proceeds of the property. Deed of Trust : Conveys title to the property into the land trust. Trustee's Deed : Conveys title to the property from the land trust to another party. The Land Trust Agreement The land trust agreement is entered into by the trustee, who holds legal title, and beneficiaries, who enjoy full control and benefits from the property. This agreement specifically defines the powers, duties, and authority of the trustee and beneficiaries. The trustee acts only upon direction from the beneficiaries and has no independent authority unless explicitly granted. Additionally, it specifies the purpose of the trust, which is typically to hold, manage, or dispose of specific real property. The agreement may include provisions for holding rents, making repairs, or selling the property. These are not recorded in public land records, allowing for confidentiality of the beneficial owner and terms. Although, the deed to the trustee will appear in public records. A land trust agreement also provides a limitation of personal liability by ensuring that the trustee is not personally liable for obligations unless they act negligently or outside their authority. Along with this, beneficiaries are shielded from personal liability related to the property, except as specifically stated in the agreement. The Deed of Trust The deed of trust is one of the two core instruments of a Florida land trust, which conveys legal title of the real property from the original owner to the trustee, who holds it on behalf of the beneficiary. The type of deed can be a warranty deed, special warranty deed, or a quitclaim deed, depending on the level of title assurance the grantor is providing. The deed also sets forth the powers and authority of the trustee. The trustee will act only in the direction of the beneficiary, unless otherwise stated. The deed or trust agreement should clearly state that the interest of the beneficiary is personal property, not real property. This provides protection from certain liens or judgments that would otherwise attach to real estate. Florida law requires specific language to create a valid land trust, specified in the Florida Statutes, Chapter 689. The Trustee The trustee is the person or entity that holds legal title to the real property on behalf of the beneficiary. The trustee is not personally liable for debts, obligations, or liabilities arising from the trust property, as long as they act within the authority granted by the agreement. The trustee can be a human being or a corporate entity. Although, if the trustee is a human being, it is important to name a successor trustee to prevent legal and management issues if the trustee becomes incapacitated or dies. The trustee should not be the same as the beneficiary, which will avoid conflicts of interest and reinforce the trust's legal structure. Lastly, the trustee may only act upon written authorization of the beneficiary and for the sole benefit of the beneficiary, meaning the trustee cannot sell, lease, or manage the property without express direction. The Beneficiary The beneficiary is the party with full control of the property held in a Florida land trust. They hold all beneficial rights and control over the property, while the trustee holds legal title. The beneficiary is not personally liable for actions taken by the trustee or liabilities tied to the property if they act through the trust structure. This adds asset protection for the beneficiary, unlike other revocable trusts. They have the power to control the sale, leasing, and operation of the property and also have the right to all revenue and profits from the property. The beneficiary's identity is not recorded in public land records, and the interest of the beneficiary may not be disclosed without a court order. The beneficiary's interest is considered personal property, meaning the title can be conveyed without a joinder of spouse. The beneficiary has all the tax advantages of real estate ownership, including mortgage interest deduction, depreciation, capital gains treatment, and sometimes homestead exemptions. Why a Florida Land Trust? A Florida land trust offers asset protection, privacy, flexibility, and estate planning benefits that make it attractive for individuals, families, and real estate investors. This trust limits personal liability because the legal title is held by the trustee, shielding the beneficiaries from direct liability related to the property, protecting the beneficiaries from lawsuits, liens, or claims that may arise from property ownership. Co-owners of the property cannot partition in court due to a disagreement or death, ensuring stability and control in co-ownership situations. A land trust ensures anonymity, due to only the trustee's name appearing in the public land records regarding the property. There are no annual fees because land trusts are not required to register with the state or pay annual fees, unlike corporations or LLCs. With a land trust, the property is not subject to the creditors or judgments of beneficiaries. Creditors cannot attach a lien to the property held in trust simply because a beneficiary owes a debt. The legal title is not clouded or disrupted in the event of death, divorce, bankruptcy, or incompetency of a single beneficiary. This ensures continuity of ownership and simplifies legal matters. Beneficiaries can transfer their interest in the property through assignment to their beneficial interest, meaning it is not necessary for a deed or public filing. This also goes to the avoidance of probate, specifically because the interest is personal property and can be transferred through assignment.