In Washington, a “Land Trust” is not an entity that can legally hold title to real property. Washington does have a business trust entity, but it must be created pursuant to statute and authorized by the Washington Secretary of State. That is not the land trust that is typically advertised on the internet.
“Land Trusts” are authorized in many states either by statute or case law. However, Washington State and Idaho are not one of those states.
Typically, a person may hold title in a fiduciary capacity pursuant to a trust agreement, but that does not provide protection against taxes or creditors that many internet sites may promise. Title companies will absolutely always continue to search for any involuntary liens under the name of the grantor, the trustee and the beneficiaries. The land trust is not able to convey a mortgage or deed with title insurance for the mortgagee or purchaser without clearing title from the grantor and creditors.
If a valid trust agreement was not formed, the property title will revert back vest to the grantor, and will also show title exceptions for the possible right, title or interest of unknown trustees and unknown beneficiaries, and further except for creditors of such persons. This situation commonly leads to a quiet title action with service upon unknown persons.