OT - at least somewhat - land trust?

[Gretel]

I am not looking for legal advise, but for some common sense approach and experience. A small group of people is in the process of forming a legal entity for a piece of land that is not supposed to be owned by an individual(s) at any point in time any more but only be used for non-profit purposes, but the land is not supposed to have income. The income arrived from leasing the land for profit and non-profit purposes should go to another entity. Is that possible? The reason behind it is that their should be no income created for the legal owners of the land trust, or whatever the entity will be.

I know it's hard to understand my point (or even to be clear about what should be accomplished). Any ideas/question will be welcomed. The entity does not want the government control that comes with creating a 501(c)3, even though with no doubt it would qualify.

[Roland Slugg]

I am not looking for legal advise (sic "advice").

Perhaps you should reconsider. You have described a situation where good legal assistance is called for, IMO.

[Uncle Sam]

I am not looking for legal advise, but for some common sense approach and experience. A small group of people is in the process of forming a legal entity for a piece of land that is not supposed to be owned by an individual(s) at any point in time any more but only be used for non-profit purposes, but the land is not supposed to have income. The income arrived from leasing the land for profit and non-profit purposes should go to another entity. Is that possible? The reason behind it is that their should be no income created for the legal owners of the land trust, or whatever the entity will be.

I know it's hard to understand my point (or even to be clear about what should be accomplished). Any ideas/question will be welcomed. The entity does not want the government control that comes with creating a 501(c)3, even though with no doubt it would qualify.

The facts are not clear.
A group of investors want to purchase (I assume) vacant real estate to be used for tax exempt purposes, but the land is supposed to be non-income producing?
Doesn't make sense unless a tax exempt organization actually purchases or leases the land to conduct its exempt purpose(s), renting it from the owners.
The owners can't escape reportable rental income, as they AREN'T tax exempt.

[Burke]

You appear to be talking about a piece of land which has certain legal restrictions on it, but it is not entirely clear from your post that these are actually written into the deed. Or if, in fact, this land is already owned by a trust that has these restrictions. This situation is best handled by an attorney and a 501(c)(3) may be their only option. An entity may not be a non-profit unless it qualifies for that tax status under the Code. A trust can distribute its income to others (including an entity) if it is so provided for in the trust document.

[Gretel]

Thanks to all. I will try to clarify some issues, that might bring forth some other thoughts, before contacting a lawyer.

Roland, I meant to say to not look for legal advice on this board.

Uncle Sam, it's not about investing. This land is/will be used for healing purposes and a way is sought to always keep it that way. It's not about tax avoidance but keeping the income away from the land within another entity.

Burke, this land is owned by a single person (healer) and nothing is done yet, see above. Putting some other people on the title that will keep the intent of the land would have as consequence that the income will be taxed to all of them. That is not supposed to happen.

[Roland Slugg]

Gretel, from what you have disclosed, there is little doubt that a lawyer will need to become involved in this, so I recommend that you stop trying to find a legal solution for your client ... or even ideas ... and instead urge him to consult an attorney right away. Then all the facts can be disclosed, and the interested parties' wishes can be made clear. A competent attorney should then be able to advise and assist.