Creating a land trust allows a person to transfer real estate out of his/her name and into the ownership of a separate legal entity. The person can still be the beneficiary of the trust but no longer owns the actual title to the land. This beneficiary can then sell his/her beneficial interest in the property while bypassing many of the hurdles common to standard real estate transactions. Land trusts offer privacy since the identity of the beneficiary is usually not a matter of public record. They also play an important role in asset protection and estate planning like any other trust.

A land trust can also be a non-profit entity that works to conserve land and protect the environment. This type of organization may work on a local or regional level. Often, people who own land want to ensure that it remains in good hands after they die. For example, an individual may wish to have a family farm protected from being bulldozed and turned into a shopping mall or an apartment complex. One way to accomplish this is by donating or selling the land to a trust. A person can choose to gift the land to the trust while maintaining the right to live there for the rest of his/her life.