Title Insurance Requirements for Insuring Trusts

Title Insurance Requirements for Insuring Trusts

  • Brian Grimm
  • 03/5/21

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 A statement that the trust has not been revoked, modified, or amended in any manner which would cause the certification to be incorrect and that the certification is being signed by all currently acting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

My Trust Contains Certain Amounts of Money to Be Given to Various Charities Which Is None of Your Business. Can I Omit These Pages?

Because many different provisions may be on the same page, the answer must be no, but if the title company requires a copy of the trust, it may accept a copy with those amounts blacked out.

If There Is More Than One Trustee, Can Just One Sign?

Maybe. The trust must specifically provide for less than all to sign.

Can the Trustee Give Someone a Power-Of-Attorney?

Only if the trust specifically provides for the appointment of an attorney-in-fact.

What Will the Title Company Require If All the Trustees Have Died or Are Unwilling to Act?

If the trustor is not able to do so, or the trust provisions prohibit the trustor from appointing a new trustee, the court may do so.

How Does a Notary Acknowledge the Signature of the Trustee?

Title is vested in the trustee. Hence, if the trustee is an individual or a corporation, then the new general form of acknowledgment will be prepared to reflect the intrinsic nature of the trustee.

How Would the Deed to the Trustee Ordinarily Be Worded to Transfer Title to the Trustee?

“John Doe and Mary Doe, as trustees of the Doe family trust, under declaration of trust dated January 1,1992.”

Are There Any Limitations on What a Trustee May Do?

Yes, the trustee is limited principally and most importantly by the provisions of the trust and, thus, may only act within the terms of the trust. The probate code contains general powers which, unless limited by the trust agreement, are sufficient for title insurers to rely on for sale, conveyance, and refinance purposes.

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Brian Grimm

Brian Grimm

Co-Founder | Realtor®

About The Author

A Colorado native going back three generations, Brian was born and raised in Littleton and has lived in Douglas County for over 20 years. He primarily serves his hometown, Littleton, and also serves Highlands Ranch, and Castle Rock. 

Brian’s wife Sarah Grimm became licensed in 2003 and was his guide into the real estate industry. He started working as her unofficial assistant, giving him the chance to gain unique hands-on training in the field by being involved in the business, even if not in an official capacity. He learned the ins and outs of the job by creating marketing plans, meeting clients, and even installing open house signs. 

In 2015, Brian and Sarah decided to become partners. Once licensed, they formed the boutique brokerage Luxe Living. Sarah served as Brian’s managing broker for three years while continuing his training. Unfortunately, Sarah had to step down to take care of her health, so Brian took over her former position as managing broker.

Brian’s favorite part of the job is assisting clients and agents alike. He takes pride in being a trusted guide to people experiencing a significant upheaval or transformative change. Brian is a communicative, supportive, caring, and hard-working professional who can simplify what can appear to be a complex process. 

By giving his clients clarity, he empowers them to make crucial decisions with confidence. Brian does this by asking questions, spending time with his clients upfront to find out what their goals and motivating factors are to keep them on track. As a former electrician, Brian also offers years of residential construction experience. In 2020, Brain was awarded the 2 Carat Diamond Award by the South Metro Denver Realtor Association, and in 2021, was awarded the 3 Carat Diamond Award.

Living in the beautiful mountainside with his wife and adorable twin children, Brian loves the relaxed lifestyle, friendly people, and abundant outdoor activities. He enjoys spending time with his family, hiking, mountain biking, fishing, and snowboarding. During baseball season, you’ll often find Brian at the Coors field cheering on the Colorado Rockies.

Brian and his wife, a two-time cancer survivor, are passionate advocates for the Believe Big Organization and the American Cancer Society. They donate a portion of all of their transactions to these foundations. 

Work With Brian

Award-winning realtor with a personal approach to clients. Has extensive knowledge of construction and the real estate process. Proudly serving Denver, Littleton, Highlands Ranch, Castle Rock, and Parker. With marketing strategies for sellers and for negotiating skills to help buyers with the right price.

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