Topic: Land Trusts
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If we open a deposit account for an Illinois Land Trust, is a tax ID number required? Can we use an individual’s social security number instead?
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We believe that you would have to obtain a tax ID number for a land trust, as you would for any other type of trust. The Customer Identification Program (CIP) rules require that you obtain a tax ID number from all customers, including trusts. 31 CFR 1020.220(a)(2)(i). A “customer” includes any person opening a new…
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Should we apply a different record retention period to land trusts than we do to other types of trusts?
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We are not aware of reasons to apply a different record retention period to land trust documents than you would to ordinary trust documents. The main legal difference between an ordinary trust and a land trust is that in an ordinary trust, there is a split between the legal title in the trustee and the…
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If we receive a writ of garnishment asking us to report all of a customer’s property, should we list the land trusts for which the customer is beneficiary and trustee?
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In our view, your response to the writ of garnishment should identify the trust’s deposit account, as well as the bank’s loans to the trust, for the reasons described below. The trustee of a land trust holds both legal and equitable title to the property in the trust, and the beneficiary has a personal property…
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If a loan is secured by a land trust, and not directly secured by any real property, would the flood regulations apply to that loan?
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An assignment of beneficial interest (ABI) in a land trust might not be considered a designated loan. Under the Illinois Land Trust Recordation and Transfer Tax Act and Land Trust Beneficial Interest Disclosure Act, the beneficiary’s interest in a land trust is defined as “personal property only.” 765 ILCS 405/1
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Does the right of rescission (ROR) apply to a home equity line of credit secured by an Illinois land trust?
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In our view, such a customer would have a right of rescission if his or her interest in the land trust is subject to the security interest. Regulation Z provides a right to rescind to “each consumer whose ownership interest is or will be subject to the security interest . . . .” 12 CFR 1026.15(a). This right to…