In California, general trust law is found in Probate Code §§15000-19403. There is no specific statute for land trusts in California, unlike Illinois Land Trust Law (765 ILCS 405/410/415/420), Massachusetts Business Trust Law (MBT) (MGLc182, §2 ) and Virginia land trust law (Va. Code Section 55-17.1).
Therefore, land trusts created in California for California properties are based on the general trust law in the aforementioned California Code of Probate. But an out-of-state land trust that would have title can be formed through the trustee of a California property, to take advantage of the more beneficial statute and jurisprudence of another state. In fact, the Virginia Supreme Court in Air Power, Inc v. Thompson, 244 Va. 534, 422 SE 2nd 786 (1992), has confirmed that Va. Code section. 55-17.1 gives the trustee of a land trust legal and equitable power of real property, which protects the privacy of the beneficiaries.
In fact, since California does not have a specific land trust statute, there is no legislative background or developed jurisprudence in this state, only general trust law and California jurisprudence. But a general trust law may have some advantages over a specific land trust statute with more requirements. In fact, the Illinois land trust statute (75 ILCS 435) requires that holders of directing power owe fiduciary obligations to holders of beneficial interests. California general trust law does not have a similar requirement.
In any case, avoiding the legalization of real property in a land trust overcomes all difficulties in its creation.
California General Trust Law:
A. Building trust:
California Probate § 15000 states that “