Land Trusts & 1031 Exchanges
Wayne Hummer Trust Company can facilitate your Land Trust or 1031 ("Like-kind") Exchanges.
A land trust in Illinois is a very beneficial trust vehicle. Property placed in a land trust does not have to be included in the probate estate of the owner. Vesting title to real estate in a land trust insulates the title from lawsuits that might be filed against the land owner individually. Lastly, the land trust offers privacy of ownership by keeping the owner's name out of public records. A land trust is an efficient and low cost mechanism for owning real property and passing it on to heirs.
Many people don't realize that a 1031 exchange can be used to provide powerful tax-deferral benefits on the sale of investment property. A 1031 exchange allows a taxpayer (Exchangor) to sell his/her existing property (relinquished property) and purchase more profitable and productive property (replacement property) while deferring Federal, and in most cases state, income taxes. It is important that Exchangors consult with their legal and tax advisors for assistance in structuring their 1031 exchange transactions. To perform a 1031 Exchange a Qualified Intermediary, often referred to as the Accommodator or Facilitator, is a required component. Wayne Hummer Trust Company can serve as your selected Qualified Intermediary and will draft the like-kind exchange agreements to structure and document the 1031 exchange transaction. We will also be assigned into each "sale" and "purchase" transaction and will hold and safeguard the 1031 exchange funds during the 1031 exchange process.
