Thursday, May 12, 2016

Insuring Living Trusts- Team Title Guy

In the world of busy probate courts and a desire for privacy, 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?
A trust is 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 living trust is an arrangement between a trustee and a 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.
If there is more than one trustee, can just one join?
Maybe. The trust must specifically provide for less than all to sign.
Who can be trustee?
Any individual not under a legal disability or a corporation that has qualified to do a trust business in the state of California.

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