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Wednesday, September 13, 2006

RECENT LEGISLATIVE CHANGES TO FLORIDA'S LAND TRUST STATUTE

Florida allows for real property to be held in a special type of trust known as a "land trust." Land trusts allow for confidentiality of ownership, and can facilitate transfers of ownership of partial or complete interests in land.

In the recently completed legislative session, Florida revised its land trust statute. Some of the more significant statutory modifications include:

-Clarication that a trustee can be a beneficiary.

-Clarificatopm that a beneficiary of a land trust is not liable for the debts, obligations, or liabilities of the land trust.

-The perfection of a security interest in a beneficial interest in a land trust does not impair or diminish the authority of the trustee under the recorded instrument.

-Subsequently recorded public documents relating to the transfer or encumbrance of a beneficial interest do not diminish or impair the authority of the trustee under the previously recorded instrument.

-A trust relating to real estate will not fail because beneficiaries are not specified by name in the recorded deed of conveyance or because duties are not imposed upon the trustee.

-Homestead tax exemption is available to property held in a land trust if the beneficiary and property otherwise qualifies for it.

-Provisions are made for recording public record documents relating to succession of trustees.

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