What type of trust involves purchasing land to be held long-term for a named party's benefit?

The correct answer is the land trust. A land trust is a legal arrangement allowing a person or entity to purchase and hold title to real estate for the benefit of a specified beneficiary or beneficiaries. This arrangement is often used to provide privacy and facilitate a long-term hold on the property without the need for the beneficiaries to be directly involved in its management or decision-making processes.

Land trusts are particularly beneficial for individuals who want to keep property ownership confidential and separate from their personal assets. They can be used for various purposes, such as estate planning, real estate investment strategies, and environmental conservation, allowing named parties to benefit from the land while the trustee manages it.

In contrast, an estate trust typically involves managing assets after someone's death, rather than holding land specifically for a named party's benefit. A land bank is generally a public or non-profit entity that acquires vacant or abandoned properties for redevelopment, which emphasizes economic revitalization rather than long-term holding for benefit. A retirement trust involves saving and managing funds for retirement purposes rather than focusing on land ownership and beneficiary benefits.