When real property is held in a land trust, who controls the property?

In a land trust, the key element is that the beneficiary retains control over the property, which is why this is the correct answer. The beneficiary is the individual or entity that ultimately benefits from the property and has the right to direct the actions of the property held in the trust.

Though the trustee holds legal title to the property and is responsible for managing it according to the terms of the trust agreement, the actual decision-making authority and the economic benefits, including the ability to sell, lease, or otherwise utilize the property, lie with the beneficiary. The grantor, who establishes the trust and conveys the property into the trust, typically does not control it once it is transferred to the trustee. The state government does not have control over the property held in a land trust unless there are specific legal or regulatory interventions in place.

This design allows for privacy and protection of the owner's identity, while still providing the beneficiary with the rights and control over the property. Thus, the structure of a land trust is specifically designed to empower the beneficiary, essentially making them the controlling party regarding how the property is used or managed.