If a property was transferred from an individual owner to a land trust, has ownership changed?
For legal and title purpose the answer is yes. But from a tax perspective if the terms of the trust make this a so-called "grantor " trust you may still be the owner for tax purposes.
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If your concern is with the "due on sale" clause of your mortgage, contact your lender and let them know of your desire to put the property in an Illinois Land Trust and that the beneficiaries under the trust will be the same as the current owners and held in the same capacity (e.g. Tenants in common, tenancy by the entireties)
Once notified, they should be willing to allow the transfer without calling the Note due. - Make sure you get it in writing.
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I agree with my colleagues. From a legal and title perspective, ownership has changed. For tax purposes, generally speaking a land trust is like a grantor trust - the property is still considered held by you (and any income, deductions and depreciation should flow through to you), and upon your death, the property will pass according to the terms of the land trust/beneficiary designation (so it will not be subject to probate).
Since it is a change in ownership/title, the "due on sale" clause could be an issue. If it is, I would also follow Ms Minchella's advice.
This answer is for informational purposes only and is not intended to be legal advice nor does it establish an attorney-client relationship. You should consult a local real estate lawyer to obtain legal advice that is tailored to your circumstances and facts. Good luck to you.