Question

Larry created an Illinois land trust agreement naming Renken Properties, Inc., as the trustee, and himself as the beneficiary. Which of these statements is NOT true?

a. Larry retains complete control of the property during the trust's term.
b. Larry's interest in the property is considered real property.
c. Renken can make decisions regarding the property as long as it's held in trust.
d. Renken can release Larry's name as the beneficiary if questioned.

Answer 1

The correct answer is option d. Renken can release Larry's name as the beneficiary if questioned.

Step-by-step explanation:

Within the context of a land trust such as the one Larry has created, certain facts apply regarding control, property interest, decision-making, and confidentiality of the beneficiary. The statement that is NOT true about this situation is that 'Renken can release Larry's name as the beneficiary if questioned' because the trustee typically must maintain the confidentiality of the beneficiary unless legally compelled to disclose this information.

Larry, as the beneficiary, does retains complete control of the property during the trust's term. He has the right to direct the trustee in matters relating to the property and can enter into contracts concerning it. However, his interest in the property is considered personal property, not real property. This is because the legal title of the property is held by the trustee, and the beneficiary's interest is in the management and proceeds of the real estate, reflecting a personal property interest.

Renken as the trustee, technically holding the legal title of the property, can make decisions regarding the property, but these actions must be according to the directives of Larry, the beneficiary, or in accordance with the terms of the trust agreement.