Is a Land Trust Valid in my State?

Many real estate investors are told land trusts are not recognized in their state. This is not unusual given land trusts are only recognized by statute in a handful of states (see below). Fortunately, other state statutes or case law recognize the validity of land trusts if you know where to look. Questions or requests for a video topic are always welcome! ? If you would like a FREE 30-minute consultation you can request one here ?? https://aba.link/30minSession Be sure to check out my website https://andersonadvisors.com/ where you can find additional information on our upcoming workshops. The following is a review of the law of land trusts in all fifty states: Alabama Land trusts are specifically authorized by state statute in Alabama. See, Alabama Code Sections 35-4-250. The trust is valid so long as the trustee has some active duties, such as collecting rents, exercising discretion in the management of the property and/or taking possession of the trust property. See Morgan Count National Bank of Decatur v. Nelson, 244 Ala. 374 13 So.2d 765 (1943); Nixon v. Nixon, 245 Ala. 43, 15 So.2d 561 (1943) Alaska There are no state statutes or cases dealing directly with land trusts. Therefore, it would be safer to err on the side of caution and use the land trust agreement with the addendum Arizona There is no land trust statute, but there is case law directly authorizing land trusts, so long as the trustee has some active du- ties. See, Lane Title and Trust Co. V. Brennan, 440 P.2d 105 (1968). Arkansas There is no land trust statute, but there is case law impliedly authorizing land trusts, so long as the trustee has some active du- ties, such as signing leases, paying taxes and distributing income. Smith v. Wright, 779 SW2d 177 (1989); See also, Murray v. Hale, 203 F. Supp. 583 (E.D. Arkansas, 1962) California There is no land trust statute, but California does not follow the Statute of Uses. At least two California court cases have expressly recognized the validity of land trusts. See, Walgren v. Dolan, 276 Cal.Rptr. 554 (1990), In Re Tutules\' Estate, 22 Cal.Rptr. 427 (1962). Some title companies in California refer to a land trust as a \"title holding\'\' trust. Colorado There is no land trust statute. Support for land trusts are implied from Board of County Commissioners v. Howard, 640 P.2d 1128 (1982). Reed v. Munn, 148 F. 737 (8th Cir. 1906) (Authority of trustee to sell or lease trust property at the direction of majority of the beneficiaries is sufficient to create an \"active\" trust). Connecticut There is no state statute, but all trusts require active duties of the trustee to avoid the statute of uses. The specific duties required of a trustee are not well defined by Connecticut law. See, e.g., Goytizolo v. Moore, 27 Conn.App. 22 (1992) and Bryan v. Bradley, 16 Conn. 174. Delaware There is no state statute. There is case law impliedly authorizing land trusts, so long as the trustee has some active duties. See, e.g., Marvel v. Wilmington, 87 A. 1014 (1913) and Houston V. Houston 20 Cal. Ch. 1, 175 A. 51 (1922). District of Columbia There is no land trust statute. D.C. Code Annotated §45-1101 implies support for the use of any trust so long as the trustee has \"some power of actual disposition.\" See, also, Liberty National Bank of Washington v. Smoot, 135 F. Supp 654 (Dist Ct. of D.C 1955). Florida The Florida legislature specifically authorizes land trusts. See, Fla. Stat. Sections 689.07 through 689.071. Any active duties of the trustee will be sufficient to validate a land trust. A property held in a land trust does not qualify for Ad Valorem tax treatment. See, Opinion of the Florida Attorney General 94-50, June 2, 1994. Georgia Previously authorized under state statute, Sections 53-12-50 through 53-12-59. Repealed. Any active duties of the trustee are sufficient to sustain the trust. See, e.g., Odum v. Henry, 254 Ga 739, S.E.2d 304 (1985). Hawaii Specifically authorized under state statute. See, Hawaii Revised Statutes Section 558-4. See, Hawaii Revised Statutes Section 558-8. Here is a link to download the complete list: http://wp.me/atVtj-u4 800.706.4741 ccoons@andersonadvisors.com https://andersonadvisors.com/ Twitter: @Clint_Coons Blog: https://clintcoons.wordpress.com/ The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.