Ok, here’s the question: my husband and I have an LLC and we are going to close on our first investment property within 4 weeks. I understand the purpose of forming a land trust and listing the beneficiary as our LLC, and then assigning a trustee (which we fully intend to do). So then our property would be in a land trust with our LLC as beneficiary. This is a single family house we are going to rent (we already have tenants lined up)… how do we handle the “due on sale clause”? Because technically there is transfer of occupancy. I read that the lease to purchase option can trigger this “dos”. Any help or advice would be greatly appreciated! Thank you 
First, have your closing atty. prepare a land trust for the seller.
The closing atty. will be the trustee and the seller will be the beneficiary. The seller can place his property in a land trust for estate planning without triggering the DOS. The trust agreement is not recorded. Only a resolution of trust agreement is recorded.
Next, the trustee (closing atty.) will have the seller sign a “transfer of beneficial interest” to your LLC. Non-recorded document.
Thank you for the very helpful information! One more quick ? for you…Are land trusts generally not recorded? I know that in dealing with certain clients in my business we have had to take their property out of trust to close on a refi. And then after the transaction closes, the property is put back into trust. But does the land trust always need to be recorded?
The recorders office will show the property in a land trust but the identity of the beneficiaries are kept private.
As to making your closing atttorney a trustee maybe for short holds but if you intend to hold your property in a land trust for longer periods 2 yrs or more I would suggest using a non-profite preferably an out of state corporation whose primary fidicuary responsibility is being a trustee so that you will have a legally structrued land trust.
A DOS is avoided legally as long as the land trust is structured onec again correctly by making sure the settor/grantor retain at least 10% in the subject trust and 50% of the voting rights.
As Mr blitz advised and quite right you then assign beneficial interest to your LLC and that can be whatever you want or is negotitated between the beneficiaries in the trust.
AS to your tenant you can make them a beneficiary in the trust legally. It is a 3 rd pary co-beneficiary land trust setup.
Thanks so much for the response I greatly appreciate it! All of the information and the process that you detailed, (as well as Blitz’s post) has clarified a lot of the confusion I had regarding the land trust and “DOS clause”. I know that structuring the land trust is crucial, and the information provided has helped me put this all into perspective. Now I know how to properly have the land trust structured…Thank you!!!