Land Trusts in Washington, D.C.
If you want a land trust in Washington, D.C. on the Illinois model, start here: we know of no dedicated land trust act in the District, which works through its general trust and real property law. A D.C. land trust is a trust that holds title to real estate in a trustee's name, and whether it works turns on the Uniform Trust Code, a statute on trustees with only nominal title, and the tax rules for transferring trust interests.
It is not a community land trust, a nonprofit that holds land for affordable housing (D.C. Code § 47-803). We set up private title-holding arrangements and tell you plainly what they do and do not protect.
How title-holding trusts work under D.C. law
A trust exists only if the settlor has capacity and intent, there is a definite beneficiary, the trustee has duties, and the same person is not the sole trustee and sole beneficiary (§ 19-1304.02). That last rule defeats the do-it-yourself version where an owner names herself both. Title may be held in the trust's name, the trustee's name as trustee, or in the name of "the trustee" (§ 19-1304.18).
Section 42-1501 governs land conveyed to one person "to the use of or in trust for another." No estate vests in the trustee, and the beneficiary is treated as holding the legal estate, unless the trustee's title is not merely nominal but connected with some power of actual disposition or management. A trustee with no real powers is the structure's weak point, so we draft the trustee's management and sale powers deliberately.
Tax decides whether the structure is worth it. The recordation and transfer tax exemptions cover a deed of bare legal title to the trustee of a revocable trust, for no consideration, where the transferor is the beneficiary (§§ 42-1102, 47-902); a deed into any other trust must be analyzed on its facts. Later, assigning more than 50% of the beneficial interests in a trust that mainly holds District real estate, within 12 months, is a transfer of an economic interest subject to recordation tax at 2.9% of the consideration allocable to the real property (§§ 42-1101, 42-1102.02, 42-1103).
Title-Holding Trust Drafting
Trust agreements with a defined beneficiary, a genuine trustee and written powers of management and sale.
Deeds and Recording
Deeds to the trustee, recordation and transfer tax filings, and exemption analysis for each transfer.
Beneficial-Interest Assignments
Review of any assignment against the 50% economic-interest rule before you sign.
Existing Trust Review
Review of trusts already holding D.C. property for nominal-trustee risk and tax exposure.
Does D.C. have a land trust statute?
We know of no D.C. statute devoted to land trusts. Title-holding trusts operate under the Uniform Trust Code (§ 19-1301.01 et seq.) and real property rules such as § 42-1501. The Code's other land trust references concern community land trusts (§ 47-803).
Does a land trust keep my name off the public record in D.C.?
Only partly. The deed names the trustee, and a certification of trust lets the trustee prove authority without handing over the agreement (§ 19-1310.13). But the transfer tax return filed with a deed is not confidential by default (§ 47-903).
Does a land trust protect my property from creditors?
Not by itself. Creditors of the settlor can reach a revocable trust and the maximum amount distributable to the settlor of an irrevocable trust (§ 19-1305.05). Protection comes from other structures, such as an LLC or, for spouses, entireties planning under § 42-516(d).
Does assigning a beneficial interest trigger D.C. tax?
It can. If the trust derives more than 50% of its receipts from District real property, or holds that property at 80% or more of its assets, assigning more than 50% of its beneficial interests within 12 months is a taxed economic-interest transfer (§ 42-1102.02).
Facing a land trust question in Washington, D.C.?
The first consultation is confidential, and we respond within one business day. Tell us about the property and who holds it today.