What does a land trust typically do regarding the ownership of property?

A land trust typically allows for privacy of ownership, which is why this option is the correct answer. In a land trust arrangement, the property is held by a trustee on behalf of the beneficiaries. This structure can keep the identities of the beneficiaries confidential, providing anonymity in property ownership.

The privacy aspect is particularly appealing to individuals or entities who wish to avoid public scrutiny or maintain a low profile. Unlike traditional property ownership, where the owner's name appears in public records, a land trust can obscure that information. This is beneficial in various situations, such as protecting assets from lawsuits or preserving the owner's privacy for personal reasons.

The other options do not accurately describe the function of a land trust. Public reporting is generally required in real estate transactions, so ownership might still become known despite the use of a land trust. While land trusts can have tax implications, they do not eliminate property taxes altogether. Additionally, land trusts are not limited to commercial properties; they can encompass residential properties as well. This broad applicability further emphasizes the flexibility and privacy benefits that make land trusts attractive to property owners.