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?

First, a certification that the Trust and amendments (if any) are complete, the names of the present trustees of the
trust, and a statement that the trustees are empowered by the trust to complete the proposed transaction.

Second, at the discretion of the title company, a full copy of the trust and any amendments.

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.

Are you ready for the AgorillaREALTOR experience? Remember: "It's a jungle out there; why monkey around when
you can hire Agorilla"  Let's get started!

Reference: Article by CLTA. Retrieved from iHouse, 10/24/08. Written in whole.
Title Insurance Requirements for Insuring Trusts - Title & Escrow
Hawaii Homes for Sale - Hawaii Real Estate
Click here to search over 6,000 Hawaii Real Estate for Sale
Nakamoto Realty, LLC., 808-688-9878, Website designed and powered by AGORILLA BRAND 2006 - A locally owned and operated site.
Copyright 2006 Dom Ruiz Agorilla (RA), AHS, AHWD, CSR, e-PRO, GRI, RECS, SRES; Aloha Aina REALTOR Award Nominee.
Information herein deemed reliable but not guaranteed. We are not affiliated with Internet sites not listed in the
AgorillaBRAND Directory; therefore, AgorillaBRAND is not responsible for the contents of these external
Internet sites. Any unauthorized copying is prohibited. All Rights Reserved.