What action creates a land trust according to the scenario described?

The creation of a land trust primarily involves the process of conveying real estate to a trustee. This action establishes the legal framework wherein the trustee holds the title to the property on behalf of the beneficiaries. In a land trust, the beneficiary retains the benefits associated with the property, such as the right to use, manage, and receive income from the property, while the trustee is responsible for legal ownership and administration.

When real estate is conveyed to the trustee, it signals an intention to manage the property through the trust, ensuring that the beneficiary's interest is protected and distinct from the trustee’s role. This arrangement allows for privacy and flexibility in managing real estate investments, which is often a primary goal for individuals entering into a land trust.

In contrast, simply purchasing land outright does not involve a trustee and therefore does not create a land trust. Forming a corporation may provide liability protection and other benefits, but it is a different legal structure focused on business operations rather than the management of real estate as a trust. Additionally, while filing a trust document may be a necessary step in some cases, it is the act of conveying the property to the trustee that directly establishes the trust itself.