California Title Holding Trust
The Title Holding Trust, often referred to as Land Trusts or Holding Trusts, has been in use in California for a good many years. I have personally been involved in the drafting, creation, and administration of Title Holding Trusts for real estate investors and homeowners in California since 1986. I have administered Title Holding Trusts that were drafted and established back to the late 1930's.
Common Ways to Hold Title to California Real Estate
However, the Title Holding Trust is not a well know method for holding title to real property in California. You might be interested in reading about the Eight (8) Common Ways to Hold Title to California Real Estate. I helped draft this years ago when I worked for The Chicago Trust Company of California (part of Chicago Title). It was Seven (7) Common Ways to Hold Title back then.
Roots in the Illinois Land Trust
The Title Holding Trust has its roots in the Illinois Land Trust. Land trusts have been used in Illinois since 1868. The Title Holding Trust or Land Trust is a simple and inexpensive method for acquiring, holding and disposing of title to California real estate and personal property.
Parties to the Title Holding Trust in California
The person that intends to acquire the real estate in a Title Holding Trust is known as the trustor or Grantor or Settlor. This is the person that has set-up the Title Holding Trust in order to acquire and hold title to California property.
Generally, the Trustor will also be the beneficiary or owner of the Title Holding Trust. The beneficiary has complete authority over the trust and generally has the power of direction. The power of direction can be delegated by appointment.
A trustee will be named or appointed within the Title Holding Trust Agreement. The trustee acquires and holds title to the real estate or personal property on behalf of the trust. The trustee in our Title Holding Trust agreements is Exeter Fiduciary Services, LLC.
Benefits of the Title Holding Trust
I will cover the advantages and the benefits of using a Title Holding Trust in my next post, so stay tuned.
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Bill Exeter has 24 years in the 1031 exchange industry and has administered in excess of 75,000 1031 exchanges during his career. He is one of the founders of the Federation of Exchange Accommodators.
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Hi Rick,
It varies from state to state.
For example, Illinois has the Illinois Land Trust. Florida has the Florida Business Trust. MA has the MA Business Trust. California has the Title Holding Trust. Other states vary depending on state laws, regulations, etc. It is really just a living trust designed specifically for holding title to real estate.
Bill ... thanks for this nice article about taking title to property in name of LAND TRUST OR TITLE HOLDING TRUST. I intend to link to your article in my ARarticle on the subject. Best wishes. Harrison
Hi Harrison,
You are most welcome. Thank you for visiting and thank you for linking back. There are so few who really understand the benefits of the Title Holding Trust.
Talk to you soon.