Title Insurance Requirements, Insuring Trusts
In today's world of busy probate courts and exorbitant death taxes, the living trust has become a common manner of holding title to real property. The following may help you understand a few of the requirements of the title insurance industry if title to property is conveyed to the trustee of a living trust.
What is a trust?An agreement between a trustor and trustee for the trustee to hold title to and administer designated assets of the trustor for the use and benefit of one or more beneficiaries.
Can a trust itself acquire and convey interests in real property?No. The trust is an arrangement between a trustee and the trustor. Only the trustee, on behalf of the trust, may own and convey any interest in real property. The trustee may only exercise the powers granted in the trust.
What will the title company require if a trustee holds the title to the property which is part of the trust?A certification of trust containing the following information:
1. Date of execution of the trust instrument,
2. Identity of the trustor and trustee,
3. Powers of the trustee,
4. Identity of person with power to revoke trust, if any,
5. Signature authority of the trustees,
6. Manner in which title to the trust assets should be taken,
7. Legal description of any interest in the property held by the trust, and
8. A statement that the trust has not been revoked, modified, or amended in any manner which would cause the certification to be incorrect and that the certification is being signed by all currently acting trustees of the trust