Land Trust & Exchange Trusts
Illinois Land Trusts
A land trust is a method of handling ownership of real estate. It is an arrangement by which the recorded title to the real estate is held by a fiduciary trustee. The beneficial ownership of a land trust is considered personal property. Consequently, the beneficial interest can be sold, pledged or assigned.
A land trust agreement is established when the real estate is purchased or after it has been acquired. The beneficiary (owner) directs State Bank of Graymont as fiduciary trustee to hold title to the real estate, and all the rights of ownership are exercised by the beneficial owner whose interest is not disclosed.
Benefits of a land trust are as follows:
- Privacy of ownership
- Protection of the owner
- Succession and ownership
- Ease of conveyance without having to obtain deeds
A 1031 Exchange Trust (Starker Exchange Trust) is the exchange of certain types of property to defer recognition of capital gains or losses due upon the sale of property. The properties must be held for productive use in a trade or business, or for investment purposes, and must be “like kind” of the same nature or characteristic. State Bank of Graymont acts as the Qualified Intermediary per the 1031 Exchange Agreement.
- The like kind property must be identified within 45 days of the date the deed records or possession is transferred to the buyer, whichever is earliest.
- The exchange ends 180 days after it begins or the date the exchanger's tax return is due, including extensions, for the taxable year in which the relinquished property is transferred, whichever is earliest.
State Bank of Graymont has full Trust powers. For more information, please contact our Trust Officers, Matt Hunter in Pontiac and Ron Minnaert in Graymont, or our Assistant Trust Officers, Gary Bressner in Pontiac and Paul Russow in Graymont.
NO BANK GUARANTEE
MAY GO DOWN IN VALUE
NOT A DEPOSIT
NOT INSURED BY ANY GOVERNMENT AGENCY