Legal Definitions - naked land trust

A naked land trust is a type of trust where the trustee holds legal title to the property, but has no control over it. The beneficiary has all the rights to use and manage the property. This type of trust is also known as a passive trust.

For example, John creates a naked land trust for his vacation home. He appoints his friend Tom as the trustee, but John retains all the rights to use and manage the property as the beneficiary.

This type of trust is useful for estate planning and asset protection, as it allows the beneficiary to maintain control over the property while keeping it out of their personal name.