What it is: a legal arrangement where ownership of real estate is transferred to a trustee — often a title company — who holds title for the benefit of one or more beneficiaries. The beneficiaries keep the right to use, control, and receive the benefit of the property, even though the trustee holds legal title.
Why they are used: privacy (the beneficiaries’ names don’t appear in public land records), easy transfer of title without multiple signatures, and certain estate-planning strategies.
Common in Illinois: land trusts are a routine, Illinois-friendly way to hold real estate — the beneficiary keeps full control (can sell, refinance, lease) while the trustee holds paper title.
Watch out for: a land trust is about title and privacy, not about avoiding taxes or creditors by itself. Pair it with the right entity or trust if asset protection is the goal.