Land Trusts in Florida: How the Florida Land Trust Act Works
Florida has a statute written for land trusts, the Florida Land Trust Act (s. 689.071), which gives the structure more certainty here than a generic trust. A recorded deed puts title in a trustee, the beneficiaries stay off the public record, and buyers and lenders can rely on the trustee's authority without seeing the trust agreement.
Aaron Bedy and Jacob M. Stern, both admitted to The Florida Bar, handle our Florida real estate matters, from titling and closings to disputes.
What the Florida Land Trust Act does, and what it does not
A land trust exists when a recorded instrument vests title in a trustee holding the powers listed in s. 689.073(1), and the trustee's duties are limited to dealing with the property as the beneficiaries direct, selling at termination, and ministerial tasks. The deed vests both legal and equitable title in the trustee. A buyer or mortgagee need not inquire into the beneficiaries or the unrecorded trust agreement (s. 689.073(2)).
The Act settles questions a generic trust leaves open. The trust agreement may declare beneficial interests personal property, and that controls; otherwise they are real property (s. 689.071(6)). A lien on the trustee's title does not attach to a beneficiary's interest, and a lien on a beneficiary's interest does not attach to the trustee's title, unless it says so (s. 689.071(8)(d)). A beneficiary's residence keeps its homestead tax exemption if the beneficiary qualifies under Chapter 196 (s. 689.071(8)(h)).
A land trust is a privacy and title tool, not creditor immunity: the Act itself provides for liens and security interests against a beneficial interest (s. 689.071(8)(c)). Taxes are the common trap. Documentary stamp tax is 70 cents per $100 of consideration, which includes any mortgage on the property whether or not assumed (s. 201.02(1)(a)), and it applies to documents transferring a beneficial interest even if designated personal property (s. 201.02(4)). On residential loans of fewer than five units, federal law bars a lender from calling the loan due when you transfer into a trust in which you remain a beneficiary and that does not transfer occupancy rights (12 U.S.C. 1701j-3(d)(8)); other loans follow their own documents.
Land Trust Formation
Recorded deed language that tracks s. 689.073(1), and a trust agreement setting the power of direction and how beneficial interests are classified.
Title and Lender Coordination
Title insurer and lender review before recording, with a documentary stamp tax analysis.
Trustee Succession and Assignments
Successor trustee declarations under s. 689.071(9) and assignments of beneficial interests.
Entitlement and Land Use
Zoning and permitting support, and Bert Harris Act claims, which need a written claim and appraisal at least 90 days before suit (s. 70.001).
Does a Florida land trust keep my name off public records?
The recorded deed names the trustee, not the beneficiaries, and the trust agreement is not recorded. Privacy from the public record is not secrecy from the parties to a deal: lenders and title insurers typically ask who the beneficiaries are.
Does a land trust protect my property from creditors?
Not by itself. A creditor of a beneficiary can pursue the beneficial interest, and the Act sets out how liens are perfected against it (s. 689.071(8)(c)). Protection comes from the exemptions and entities around the trust.
Can I keep my homestead exemption if my home is in a land trust?
The property tax exemption, yes, if you qualify under Chapter 196 (s. 689.071(8)(h)). That provision covers the tax exemption only. Whether constitutional protection from forced sale reaches a home titled in a trustee is a separate question we analyze first.
Who acts if the land trust's trustee dies or resigns?
If the recorded deed and trust agreement are silent, the holders of the power of direction appoint a successor by recording a signed, acknowledged declaration in the county where the property sits. The successor takes the predecessor's powers (s. 689.071(9)).
Facing a land trust question in Florida?
The first consultation is confidential, and we respond within one business day. Tell us about the property, who owns it, and what you want to keep private.