Florida Land Trust: Privacy, How It Works, and What It Cannot Do

A Florida land trust is a special form of trust, created under the Florida Land Trust Act, that holds title to real estate while keeping the owner’s name off the public record. The trustee’s name appears on the deed; the real owner holds a private beneficial interest that Florida law treats as personal property. Land trusts are a long-standing tool for privacy and convenient transfer of Florida real estate, and they are frequently misunderstood: a land trust is not the same as a living trust, and it is not an asset protection force field. This guide explains what a Florida land trust actually does, what it does not do, and how it fits alongside the rest of an estate plan.

What Is a Land Trust in Florida?

Under the Florida Land Trust Act, F.S. 689.071, a land trust is created when real property is deeded to a trustee under a recorded instrument that grants the trustee the power to hold, sell, convey, and manage the property. The statute gives the arrangement two unusual features. First, the trustee holds both legal and equitable title, so anyone dealing with the property can rely on the trustee’s authority without reading the trust agreement. Second, the beneficiary’s interest is defined as personal property, not real estate.

The trust agreement itself is a private contract between you and the trustee. It never gets recorded. It says who the beneficiaries are, who holds the power of direction (usually you), and what happens to the beneficial interest at your death.

How a Florida Land Trust Works

In practice, a land trust involves three roles that the paperwork keeps separate. The trustee appears on the deed and signs documents affecting title, but acts only on written direction. The beneficiary receives all the economics: rent, sale proceeds, tax obligations, and the right to possession. The holder of the power of direction tells the trustee what to do, and is usually the beneficiary. You keep every practical benefit of ownership while the public record shows only the trustee.

Because the beneficial interest is personal property, ownership can change hands by a signed assignment, without recording a new deed. Families and investors use this to add or remove co-owners, move the interest into a living trust, or transfer interests among family members without touching the county records each time.

What a Land Trust Is Good For

Privacy of ownership. Your name does not appear in the county’s searchable records as the owner. Landlords who prefer tenants not know who owns the building, professionals who want a lower public profile, and families who simply value privacy are the typical users.

Clean, low-friction transfers. Assigning a beneficial interest is simpler than deeding real estate, and it avoids the recording formalities that accompany every deed.

Multiple owners without title complications. Several beneficiaries can share one land trust in defined percentages, and the trust agreement, not the deed, governs their arrangement.

Coordination with your estate plan. The trust agreement can name successor beneficiaries, or the beneficial interest can be held by your living trust, so the property passes outside probate at your death. This coordination step is where do-it-yourself land trusts most often fail: a land trust whose beneficial interest sits in your individual name still leaves that interest subject to probate.

What a Land Trust Does Not Do

It is not asset protection by itself. Privacy is not protection. If a creditor obtains a judgment against you, your beneficial interest is an asset they can pursue. Real protection comes from other structures, and anyone selling a land trust as a creditor shield is overselling it.

It does not replace an estate plan. A land trust holds real estate. It does not manage your finances at incapacity, coordinate your other assets, or name guardians. It is one piece that should plug into a plan built around a complete trust strategy.

Homestead needs careful handling. Florida homestead status affects taxes, creditor exemptions, and restrictions on how a home can be devised. The Land Trust Act preserves homestead tax treatment in qualifying arrangements, but whether your primary residence belongs in a land trust at all is a case-by-case legal question. Get advice before deeding a homestead into any trust structure.

Lenders and insurers have opinions. Financing property held in a land trust, or moving mortgaged property into one, raises due-on-sale and insurance questions that should be checked before recording anything.

Land Trust vs. Living Trust: Which Do You Need?

The two work well together: the land trust holds the property for privacy, and your living trust holds the beneficial interest so everything still passes outside probate. For a homeowner whose only goal is keeping one property out of probate without privacy concerns, a lady bird deed is usually the simpler and less expensive tool.

How Bucelo Diaz Law Sets Up Florida Land Trusts

Because the firm practices both Florida real estate law and estate planning, a land trust engagement covers the whole picture: drafting the trust agreement and deed, checking title and financing implications, coordinating the beneficial interest with your living trust or successor beneficiaries, and recording only what must be recorded. Fees are flat and quoted at a free consultation before any work begins.

Frequently Asked Questions

About the Author

Alexis Bucelo Diaz, Esq., LL.M. is the founding attorney of Bucelo Diaz Law, PLLC. She holds a Master of Laws (LL.M.) in Estate Planning from the University of Miami School of Law and has more than 15 years of focused experience in Florida estate planning, probate, and real estate law. Florida Bar #86918. Selected to Super Lawyers Rising Stars in 2025.

This page is provided for general informational purposes only and does not constitute legal advice. Reading this page does not create an attorney-client relationship. Please consult a qualified Florida attorney about your specific situation.