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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Effect on title insurance when switching to a trust Posted by Ward-CA- on May 30, 2003 at 8:15 AM In Reply to: Title ins and title holding trusts posted by Erick on May 30, 2003 at 5:39 AM : Does conveyance of title from a person to a trustee in charge of a title holding trust owned by that person compromise the existing owner's title insurance policy? Or, would a new policy have to be written? : And I'm wondering if it matters whether we're talking about me, as an individual, moving my personal property into a title holding trust or we're talking about an LLC which owns the property moving it into a THT with the LLC as the beneficiary. : And, to complicate it, how about when the grantor is not the resulting beneficiary. Say for example when you are purchasing a property from a seller and you don't want your name in the chain of title and you create the trust with yourself as the beneficiary and have the seller deed the title to your trustee. : Or, what if the grantor is an entity at least partially controlled by you; like an LLC where you are a member. So, you have the LLC deed the property to the truste and you, as an individual, are the sole beneficiary of that trust. Does that invalidate the owner's title insurance? Or, more importantly, are there any other broader problems with these types of conveyances. : Thank you for your time. =•=•=•=•=•=•=•=•=•=•= Erick, No, an additional party can generally be added to the existing title insurance policy via an endorsement for $50 or so. However in different states or perhaps given differing scenarios, a new change to the title ownership of the property may not qualify for a simple endorsement. Obviously if you’re in doubt as to the consequences that might befall your existing title insurance coverage due to a planned change in the way you hold title to the property you might want to consult with your title insurance company beforehand. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Does conveyance of title from a person to a trustee in charge of a title holding trust owned by that person compromise the existing owner's title insurance policy? Or, would a new policy have to be written? : : And I'm wondering if it matters whether we're talking about me, as an individual, moving my personal property into a title holding trust or we're talking about an LLC which owns the property moving it into a THT with the LLC as the beneficiary. : : And, to complicate it, how about when the grantor is not the resulting beneficiary. Say for example when you are purchasing a property from a seller and you don't want your name in the chain of title and you create the trust with yourself as the beneficiary and have the seller deed the title to your trustee. : : Or, what if the grantor is an entity at least partially controlled by you; like an LLC where you are a member. So, you have the LLC deed the property to the truste and you, as an individual, are the sole beneficiary of that trust. Does that invalidate the owner's title insurance? Or, more importantly, are there any other broader problems with these types of conveyances. : : Thank you for your time. : =•=•=•=•=•=•=•=•=•=•= : Erick, : No, an additional party can generally be added to the existing title insurance policy via an endorsement for $50 or so. : However in different states or perhaps given differing scenarios, a new change to the title ownership of the property may not qualify for a simple endorsement. : Obviously if you’re in doubt as to the consequences that might befall your existing title insurance coverage due to a planned change in the way you hold title to the property you might want to consult with your title insurance company beforehand. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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