Homeowners often transfer the title of their property as individuals to a trust. They may do this for a variety of reasons, but most of the time it is for estate planning.
Often times people forget that they have transferred their property into a trust when they go to sell their property. The title report is issued and title is not vested in John and Mary Jones, but rather in the Jones Family Trust.
Escrow will be required to ask the owners for a copy of the trust agreement. The trust agreement is rarely, if ever, recorded so it needs to be provided to us by the client. Escrow and title need to determine who has the signing authority for the trust. This is necessary before escrow can prepare documents for a sale or a refinance.
A trustee may assign a successor trustee (another person to perform their duties), but they cannot give a Power of Attorney to anyone.
This is different from holding title as an individual. If title is held in this manner the client may appoint an Attorney in Fact to sign on their behalf.
If you know the property is held in a trust, be prepared that escrow will be asking for a copy of the trust..
Happy Investing!
Today's blog post courtesy of Chicago Title and Escrow
Today's blog post courtesy of Chicago Title and Escrow
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