Insuring Transactions Involving Trusts: Title Company RequirementsBy Barbara Pronin
To understand title insurance requirements for insuring title in a trust, it is helpful to review a few terms:
Q: Who can be a trustee? A: Any individual not under a legal disability or a corporate entity qualified to do trust business in the state in which the trust is created. Q: If there is more than one trustee, can just one sign on behalf of the trust? A: Perhaps. The trust must specifically identify all parties necessary to sign. Q: Can the trustee give someone power of attorney? A: No, unless the trust agreement authorizes the appointment of an attorney-in-fact. Q: What if all the trustees have died or are unwilling to act? A: The trust agreement usually appoints successor trustees, but if not, the court may do so. Q: Are there any limitations on what a trustee may do? A: Yes. The trustee is limited by the provisions of the trust, and must only act within the terms of the trust. Additionally, most states have enacted laws that contain trustee or fiduciary powers which, unless limited by the trust agreement, are sufficient for title insurers to rely upon for the purposes of sale, conveyance, and/or refinance. Barbara Pronin is an award-winning writer based in Orange County, Calif. A former news editor with more than 30 years of experience in journalism and corporate communications, she has specialized in real estate topics for over a decade. |
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