A living trust can provide property benefits to the trustor and their beneficiaries. It has become a popular way of holding title to real property. When it comes to insuring a living trust, there are certain requirements that the trust must meet. Find out more about living trust and what will be needed to insure them.
Creating a Trust.
A trust is essentially an agreement. The trustor agrees to give the trustee access to designated assets of the trustor, including allowing the trustee to hold a property’s title, to benefit the trustor’s beneficiaries. The benefit of a living trust allows for the holding of title to real property.
Assigning a Trustee.
When it comes to choosing a trustee for your trust, there are certain provisions. In the state of California, a trustee can be an individual as long as they don’t have a legal disability. A corporation can also be a trustee if they’re allowed to do trust business in California.
Holding the Title to the Trust.
When it comes to the trust, it’s important that the necessary documents are provided. When a property is part of a trust, it’s important that the trustee has the right title paperwork. The title company will require that you have a fully copy of the trust complete with any amendments. Additionally, the copies of the title must be verified as true and complete copies, and the names of the trustees must be verified.
When it comes to a living trust, there are certain limitations for the trustee. The trustee is restricted to the specifics of the trust. They may only act within the parameters that are outlined within the trust. However, there are certain powers allowed by the probate code that, unless restricted by the trust, can suffice for the sale, and refinance purposes for the title insurers.
Trusts and Interest in Real Property.
There are limitations when it comes to the trust and real property. Despite having in interest in real property, the trust is strictly an agreement. The trust is unable to acquire real property. However, the trustee is able to own and convey interest in real property should the trust agreement grant powers to allow for it.
To learn more about a living trust and your property, contact your Fidelity National Title Sales Executive!