If you`re looking to invest in land without the burden of personally managing it, a bare land trust agreement could be the solution you`re looking for. This type of trust agreement allows you to become a beneficiary of a trust that owns the land, while the trustee is responsible for managing the property.
A bare land trust agreement is a legal document that establishes the terms and conditions of a trust that owns bare or undeveloped land. The trustee is the legal owner of the property and has the right to sell or lease it, but they`re bound by the conditions outlined in the trust agreement.
As a beneficiary of the trust, you have the right to receive any income that the land generates. This could include rent from tenants or income from the sale of timber or other natural resources. You also have the right to use the land for personal purposes, such as hunting or fishing, but you cannot interfere with the trustee`s management of the property.
One of the major advantages of a bare land trust agreement is that it allows you to invest in land without having to worry about the day-to-day management of the property. This can be especially appealing for those who are interested in investing in land, but don`t have the time or expertise to manage it themselves.
Another benefit of a bare land trust agreement is that it can provide tax benefits. Because the trust owns the land, any income generated by the property is taxed at the trust level, which can be lower than individual tax rates. Additionally, the trust may be able to take advantage of tax deductions and credits related to land ownership.
It`s important to note that a bare land trust agreement is not the same as a land trust. A land trust is a legal entity that holds and manages land for conservation or preservation purposes. While a bare land trust agreement may have some similarities, its primary purpose is to provide a simple and efficient way for individuals to invest in land.
If you`re considering a bare land trust agreement, it`s important to work with an experienced attorney who can help you understand the legal requirements and ensure that the terms of the agreement meet your specific needs. With the right guidance, a bare land trust agreement can be a valuable tool for investing in land and generating income.